The interest rate cut wave has begun!

In 2020, due to the sudden outbreak of the epidemic, the global real economy fell into difficulties.

At the beginning of the epidemic, the U.S. stock market was repeatedly circuit-breakered, which led to a continuous plunge in cryptocurrencies for many days.

On March 20 of that year, at least 35 regions in the world announced 57 interest rate cuts.

In the following year or so, the United States took the lead, global water release began, and cryptocurrencies also created a historic increase.

This was driven by interest rate cuts.

The interest rate cut is accompanied by water release. Due to the epidemic, most people in the world have lost their jobs. In order to solve short-term practical problems, the United States began to cut interest rates and release water, that is, to spend money.

When everyone had no jobs, the United States began to print money and give money to everyone in disguise, thereby solving the liquidity problem in the market.

But long-term water release and money throwing will cause inflation problems.

So since March 2022, the Federal Reserve has raised interest rates, the macro market has also fallen into liquidity tightening, and cryptocurrencies have begun to fall. As for U.S. stocks, due to many special reasons, they have staged a perverted counter-trend trend, and tens of thousands of words are omitted here.

Raising interest rates means recovering global dollars, allowing everyone to deposit their money in banks, and venture capital products will fall.

Cutting interest rates means lowering bank interest rates, releasing the liquidity of dollars, and flowing to venture capital targets, which means rising.

So, everyone knows that when the Fed raises interest rates, cryptocurrencies will fall, and when interest rates are lowered, they will rise. But these are all long-term positives, and will be reflected in the cryptocurrency market in advance or later with a landmark event.

But this impact is hidden, subtle, and not very direct.

The Fed's interest rate cut is superficially related to the country's CPI data and non-agricultural data, but in fact their data are all fake, or in other words, they are completely for the purpose of harvesting the world.

Continuing high interest rates and delaying interest rate cuts will keep global funds in the United States for more time, and will keep the US dollar exchange rate high for a long time, which is a disguised way of harvesting the world.

But continuing high interest rates and delaying interest rate cuts will also bring a series of problems.

The most direct is the pressure on small and medium-sized banks, and the several US banks that went bankrupt last year are examples; the second impact is the venture capital field, which should be US stocks, but US stocks have not fallen due to leverage, manipulation and other factors;The impact is also on the entire physical consumption sector. For example, if everyone keeps their money in the bank, what will happen?

If you don't know, just look at the relationship between the past financial crises and the US interest rate hikes.

In short, the money is trapped in a small pool, and no one outside is happy.

Therefore, there are so many Wall Street institutions forcing the Federal Reserve to cut interest rates, but it seems that the impact is not great.

However, there are some changes now.

The European Union and Canada have begun to cut interest rates one after another.

Canada has a relatively large land area, but let's not talk about its size. Let's talk about the European Union.

The European Union's economic size is very large, and the status of the euro is second only to that of the United States. If the United States continues to maintain a tight policy and keeps money in the bank, it will increase the global liquidity of the euro and weaken the status of the US dollar.

More impacts are currency depreciation, pressure on US debt, capital flows, etc.

As a younger brother, the European Union will naturally put some pressure on the United States if it cuts interest rates in advance. This pressure cannot be reflected in cryptocurrencies in the short term, but it will indirectly promote the progress of interest rate cuts in the US dollar zone, and the possibility of raising interest rates is almost zero.

Finally, today is June 6th, which is also the first large-scale interest rate cut and money printing wave after the global tightening policy due to the epidemic. This is just the beginning, and the climax will be in half a year.