The Fed has been raising interest rates for more than two years, and the original intention was to cause global market turmoil and reap benefits through this measure.
However, unexpectedly, countries around the world are accelerating to reduce their dependence on the US dollar, which has led to the Fed's long-term high interest rate policy, which in turn has a negative impact on itself.
Although the Fed holds a large amount of US dollar reserves, these funds have become worthless to some extent because they cannot effectively use these dollars to reap other countries.
In order to convert these dollars regarded as "waste paper" into capital, the Fed can only adopt the strategy of expanding its balance sheet and lowering interest rates, and flowing funds into the stock market, futures market, gold, silver, oil, blockchain and cryptocurrency markets, etc.
At present, all parties are exercising restraint and watching the market trend to see who can last to the end.
It is expected that in the second half of this year, the Fed may have to start cutting interest rates, and once the interest rate cut cycle starts, it may last for a while.
In summary, all parties in the current market are exercising restraint, including investors participating in the cryptocurrency market. If you fail to stick to the strategy and rush to cut your losses and leave, you may miss good opportunities in the future.
