The deep logic under the market fog, the global economic landscape and new hope of the currency circle under the test of high interest rates
The current market is indeed confusing, but those who are familiar with the laws of the market know that there are unknown logic and motivations behind every anomaly.
The United States' monetary policy continues to anchor the high-interest rate track, and there is no sign of interest rate cuts. This move not only exacerbated the tense atmosphere in the global market, but also exposed the fragility of the bond market in the United States, and the mortgage sector was even more precarious.
Against this background, economies such as Japan quietly adjusted their strategies to reduce their holdings of U.S. debt in order to protect themselves, and the losses in the European and American commercial real estate mortgage bond markets have become another example of the pressure on the global economy. This series of chain reactions all indicate subtle changes and deep challenges in the global economic landscape.
Every step of the Federal Reserve seems to be extremely cautious, trying to balance the scales of inflation and growth, and carefully dealing with the hidden dangers left by its own policies. The market generally expects that continued high interest rates will eventually become unsustainable, and the Federal Reserve may open the door to interest rate cuts in the near future, such as in September, to ease economic pressure and prevent the debt snowball from rolling bigger and bigger.
Since the end of last year, the cryptocurrency circle has experienced a gorgeous turn from silence to explosion, until it reached a staged peak in April this year. Although the current market is slightly quiet, many funds are still hovering outside the market, waiting for the best time to enter. This just indicates that the real climax of the market may not have arrived yet, and the power that is ready to go is surging undercurrent.
History tells us that the market's recovery often begins at the darkest moment, just as the darkness before dawn is the deepest, the current trough may be the hotbed for new hope. The wisdom of capital lies in insight into opportunities, not blindly following the trend. Since capital has not yet withdrawn on a large scale, the vitality of the market is still strong, and a turnaround is always waiting for us not far away.
The market has experienced a sharp drop, and the cottage generally pulled back. Next, I will prepare some currencies suitable for bottom-fishing and put them in my "Return to Capital Plan". If you get lost, come to the intermediary to find the way!
