[Blockchain in Plain Language] Binance is approved to deposit customer legal funds into U.S. Treasury bonds
First, let's take a brief look at U.S. Treasury bonds. U.S. Treasury bonds are actually IOUs that the United States relies on its own comprehensive strength, promising to pay interest for a certain period of time.
So what is the relationship between the Fed's interest rate hikes and cuts and U.S. Treasury bonds?
The interest rate of U.S. Treasury bonds is fixed, but after the Fed adjusts the interest rate, it will determine whether financial institutions can borrow cheaper money in the market. The expected interest income of U.S. Treasury bonds and the difference after the increase or decrease of interest rates determine the real price of U.S. Treasury bonds in the market.
Binance can use customer funds to purchase U.S. Treasury bonds. The stock of U.S. Treasury bonds in the market is really super large. I don't know how Binance will decide the amount of funds to purchase this time. The income of U.S. Treasury bonds is still very considerable.
Raise or lower interest rates? A real bull market or a negative decline to a bear market? With the good news from the dealer, is it possible for BTC to be quickly pulled to 10W in the second half of the year? This is all worth looking forward to.