📢 The yen is strong again, the Bitcoin market is turbulent, and the chain reaction caused by the interest rate hike?
📈Recently, the strength of the yen has become a hot topic in the financial community. We know that the long-term zero interest rate policy maintained by the Bank of Japan has provided a source of low-cost funds for global investors. In theory, borrowing from Japan and investing in the S&P 500 of US stocks can enjoy an average annualized return of 10%. This strategy has attracted a large number of institutions to borrow yen and invest in other high-risk, high-yield products such as US stocks.
💥However, the sudden decision of the Bank of Japan to raise interest rates at the end of last month seems to have broken this balance. The Bank of Japan directly raised interest rates by 20 basis points, which may face the risk of forced settlement for those institutions that borrowed funds at zero interest rates and invested in high-risk products, which in turn triggered large fluctuations in the market.
🤔 However, there is a view that the market may have overreacted to the Bank of Japan's interest rate hike last month. The annual interest rate of 20 basis points is not enough to cause huge market turmoil so quickly, suggesting that market speculation may be greater than the actual impact.
📉 There is also a view that whenever there is a market correction, the mainstream media is always eager to find and explain the reasons. But market ups and downs often do not require specific reasons, and sometimes they are just part of the natural fluctuations of the market.
🌀Therefore, for the recent correction of Bitcoin, some people believe that it is caused by the interest rate hike and surge of the Japanese yen; but different views believe that this is just a natural correction after the market has experienced a round of gains, and there is no need for too much interpretation.
🚀 At the same time, many people predict that the price of Bitcoin will exceed $100,000 in the next few months, and Ethereum will also hit a record high. At that time, the mainstream media may continue to weave a new round of narratives for the price of Bitcoin as the market trends. Therefore, in such an environment, it is particularly important to have the ability to think independently! !
💬 So, what do you think about the impact of the strengthening of the Japanese yen and the interest rate hike of the Bank of Japan on the global market? Do you think that market corrections always need a clear reason? In investment, how can you cultivate your independent thinking ability? Share your views!
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