On May 22, the FED announced the meeting documents that scared many people, because they thought they were ready to raise interest rates further if they could not control inflation.
The market predicts that the FED will reduce interest rates three times in 2024 in June, September and December, but currently it is unlikely to reduce interest rates in June and even last until the end of the year.
The development of artificial intelligence will be the trump card to help the US economy grow strongly at this time, even though the unemployment index will increase.
Recently, after May 22, the whole market dropped sharply from US stocks to BTC, NVIDIA's financial report stimulated a strong recovery of the stock market.
On May 23, a very important event took place: the US Securities Commission approved the first ETF for ETH.
Currently, there are about 50 million Americans using Crypto, compared to the US population of 300 million, only 16%, this is not a large percentage, but the ETF event will be a turning point to attract more people to know and participate. Crypto increases in the future.
Does the Fed like cryptocurrencies or not?
After a long period of time to prevent it, the SEC also officially accepted and created its own laws to control participants.
Once the ETF is approved, people can buy BTC and ETH on any stock exchange instead of having to find a cryptocurrency exchange like Binance and being vague about headquarters and complaints.
After the BTC ETF was approved, the price increased from 42k to 70k, while last year the price was only 16k, meaning that in just 2 years it has increased 4 times.
Initially, the FED and large traditional fund management companies like Blackrock opposed bitcoin, the main reason being that it allowed many people to make anonymous transactions without going through the banking system, and the speed was fast. , which simply means that the US Government will not be able to control these transactions.
Over time, the number of people who agree to use this cryptocurrency is too large, which goes into the key factor in the "Credit" of the circulating currency, or in other words, it is expressed through liquidity. big day 1.
The reason why the dollar is strong is also because of the two words great liquidity. The consensus of many people in this world is that they believe in the value of the dollar even more than the value of their home country's currency.
It is this consensus of continuously increasing liquidity that makes large funds pay attention and seek to own it, when calculating that the future growth margin is still quite large.
So does it affect the hegemony of the dollar or not?
Yes, but Americans know very well how to convert Risk into Co.
Look at valuable resources such as Oil, Gold, gas, even rare earths, all of which are more valuable than dollars, but why do people still keep dollars, because Americans have absorbed those values into is 1 with the dollar, that is, attaching it to the common denominator of the dollar, you want to own it, hold it, ok, it's not forbidden, but you have to use dollars to buy and trade.
Trump is very smart, he has understood this, and always asserts that in big events
" I will support the right to self-custody
to the nation's 50 million crypto holders.
I will ensure that the future of crypto and the future of bitcoin will be made in the USA not driven overseas.. "
He always affirmed that he would ensure that the future of cryptocurrency and bitcoin would be led by the United States and not by other countries.
If you understand monetary economics and crowd psychology, you will see that this is correct, because currency is based on Consensus, this is the reason the US wants to accelerate to increase dollar liquidity and China will left behind after this big turning point.
If the people of China or any other country can freely buy and sell Crypto, the government will completely lose control of the flow of foreign currency, but if it is priced in dollars, there will be another reason for people to keep it. dollars instead of keeping money in the country, that's why other countries ban it but America will open it even more.
Remember, the more things of value are denominated in dollars, the more other countries' currencies lose value.
P2 + 3 will extract how the Crypto money flow will affect the future of the market and World Economic Indexes at Macro Library Channel.