No kidding, the global market is still brewing risks.
Recently, Xiaohongshu often sees many newbies making money and showing off their gains in Japanese stocks...
Generally, this is not a good phenomenon, and the indexes are all at historical highs.
The US stock market has reached a new high, and Tesla has also risen 📈. Other US stocks are quite high and I dare not add them.
As for why the crypto market is weak, there is no overwhelming capital inflow?
I personally think that one of the major factors in the weakness of the cryptocurrency market is related to the economic environment and monetary policy.
As the US dollar deposit rate rises and remains at 5%, traditional low-risk investments become more attractive, which may lead to capital outflows from the high-risk cryptocurrency market.
The current interest rate is 5% for depositing US dollars. If the market is conservatively evaluated, it is normal that high-risk investments such as the currency circle are not favored by the market without new narratives.
This year's crypto-related search data is also not as good as in 2021.
Like the unlimited QE in 2020, the money was released in large quantities, the interest rate was 0%, and the money rushed to the US stock market. At that time, Bitcoin and Ethereum had various Defi narratives. There was a lot of market funds, and it was normal for the bull market to be big.
After all, funds tend to flow into the stock market and the cryptocurrency market because investors seek higher returns.
As for the interest rate cut at this position, don't expect too much...
1 There is no major liquidity crisis, and it is impossible to cut it quickly. If it is to be cut, it will be a little bit. In the long run, it will still maintain a relatively high interest rate or a neutral interest rate.
2 The current position is so high, if the interest rate is cut and then it soars, then inflation will be terrible.
3 The global market has risen from a low level for a year and a half, and the expectation of interest rate cuts has been digested.
So, the overall situation is still based on risk.