Does anyone know why sec's attitude made a 180° turn overnight?

Thirteen provides an idea, maybe you can figure it out.

The reason is simple: the U.S. election.

In fact, Biden has always had a negative attitude towards cryptocurrency, but his opponent Trump did not follow the routine and publicly stated that he would strongly support the development of cryptocurrency and asked people in the cryptocurrency circle to vote for him.

The results are also significant. According to statistics from professional websites, Trump’s winning rate has reached 55%, while Biden’s is only 39%.

So Biden panicked.

This should be the direct reason for sec's 180° turn in attitude.

By releasing benefits to cryptocurrencies and stimulating the economy, the purpose is to win votes from voters.

We have said before that the November election will completely bring the currency circle into a bull market.

Some clues can also be seen through the M2 data. Laomi has lowered the deposit reserve ratio. To stimulate the economy, it is not only cutting interest rates, but also expanding the balance sheet, and lowering the deposit reserve ratio.

In particular, the deposit reserve ratio may be the most direct means to stimulate the economy. For example, if I deposit 100 yuan in the bank, usually in order to cope with the customer's withdrawal needs, the central bank will require the bank not to lend out all 100 yuan and must keep 20 yuan as Deposit reserves.

In other words, there are only 80 yuan circulating in the market. Of course, these 80 yuan flow into other banks, and the same is true. Generally speaking, it can be nested 10 times.

These 100 blocks may generate 1,000 blocks of M2.

If the deposit reserve ratio is lowered from 20 yuan to 10 yuan, the bank can lend 90 yuan, and the next bank can lend 80 yuan if it leaves 10 yuan.

As M2 increases, there will be more money in the market.

In layman's terms, a decrease in M2 is equivalent to an increase in water volume, while an interest rate cut is equivalent to a decrease in the price of water.

If you have any questions about this, you can discuss it privately.