The borrowing rates for U.S. enterprises are high, and the long-term high interest rates have disrupted production cooperation. Recently, I saw data showing that borrowing rates from banks in the U.S. can reach as high as six or seven percentage points, while the average profit for global enterprises is only around five percentage points.

Therefore, during the process of interest rate cuts, there is a high probability that the concept of economic recession will be hyped up. Whether it is a real recession or a fake one, the Federal Reserve needs a reason to accelerate the interest rate cut process, and the most urgent need for interest rate cuts comes from the heavily indebted U.S. government.

In addition, due to geopolitical factors or other unexpected human events, it is easy to experience panic-induced black swan events, at which point the market will face a sharp decline, similar to the wave on March 12th. This kind of sharp decline is not just a typical deleveraging adjustment, but can be a bloodbath that shatters the beliefs of most people.

If there is a bloodbath scenario going forward, it will be a godsend opportunity, and the Federal Reserve will subsequently unleash a significant amount of liquidity, while the cryptocurrency market will also enter a frenzy of bullish activity.