A Revisit to Rate Hikes
The G20 finance ministers and central bank governors meeting is imminent. Developed countries are all preparing for rate cuts, but if the US doesn't follow suit, the currency deficit will widen further, being harvested by the US dollar. How will the Fed, as the big brother, respond?
Furthermore, is the US economy really doing that well? The "golden-haired girl" economy of high growth and low inflation first and foremost requires reasonable interest rates. Currently, high inflation and high interest rates ultimately hurt everyone, especially the Fed and the US government. If earning money is all about paying interest, the deal just doesn't add up.
All hawkish moves are aimed at managing inflation expectations and controlling financial tightening. Talk is cheap; actions speak louder.
The unexpected significant increase in US oil reserves represents heightened concerns about the Middle East situation spinning out of control, leading to another downturn in both the stock and crypto markets. The recent Middle East situation has indeed cast a significant negative shadow on the upcoming BTC halving event.
