June 29, 2023
Recently, the outflow of funds in the cryptocurrency market has accelerated, and insufficient liquidity has become the main reason for limiting price increases. The decoupling of the cryptocurrency market from the US stock market does not affect the flow of the market in the middle line. In addition to the supervision of market makers by the CFTC and SEC, the sentiment of the macro market cannot be ignored. In addition, Teacher Xiaomai teaches everyone a way to judge the purchasing power of the market: look at the trading volume of BTC and ETH in CMC. It can be seen that the trading volume of BTC and ETH is falling every day. The reduction in the market value of stablecoins reflects the reduction in purchasing power.
Yesterday, Powell said in a policy group discussion at the ECB Central Bank Forum that although the policy is restrictive, it may not be restrictive enough and the duration of the restriction is not long enough. In other words, Powell believes that the Fed has not completed the interest rate hike this time and the rate hike will continue, but he is not sure whether it will be raised every other meeting. However, continued control of inflation is necessary, and the President of the European Central Bank and the Governor of the Bank of England have also expressed the same attitude.
Powell pointed out that most Fed policymakers expect at least two rate hikes this year, and the Fed and the European Central Bank have shown an attitude of continuing to raise interest rates, leading to capital inflows into AI and technology stocks. Although U.S. stocks have hit new highs under the leadership of AI, other industries are still not optimistic enough. In addition, after the last banking crisis, the banking industry will face new regulations: Powell said that large banks may face an increase in reserves of about 20%.
Secondly, as of June 27, Eastern Time Zone, the balance of the U.S. Treasury Department has risen by more than $400 billion compared to the lowest point during the debt crisis, reaching about $438 billion, indicating that the Treasury Department issued more than $400 billion in Treasury bonds in June, and the bloodsucking of the market has gradually begun. At present, try to avoid the game of altcoins and pay attention to the big cake and the second cake.