Mastering the US Macroeconomy: The Key to Success in Cryptocurrency and US Stocks

Navigating the cryptocurrency and US stock markets requires an understanding of the US macroeconomy as your roadmap. Mastering key indicators can help you accurately judge market trends and seize investment opportunities.

Core indicators to focus on:

1. GDP Growth Rate:

• Reflects the health of the economy; when growth is strong, risk assets (such as cryptocurrencies and US stocks) typically perform well.

2. Federal Reserve Monetary Policy:

• Interest Rate Hikes: Tightening liquidity, suppressing prices of risk assets.

• Interest Rate Cuts: Releasing liquidity, with funds flowing in, driving up asset prices.

3. US Treasury Dynamics:

• Rising Yields: Attracting funds back to the bond market, bearish for the crypto market.

• Falling Yields: Funds flow to higher-risk assets, such as stocks and cryptocurrencies.

4. Dollar Index (DXY):

• When the dollar strengthens, prices of risk assets are usually under pressure; when the dollar weakens, cryptocurrencies become more attractive.

5. CPI (Consumer Price Index):

• Reflects inflation levels, directly impacting the Federal Reserve's policy adjustment expectations.

6. FOMC Meeting Decisions:

• The policy decisions of the Federal Reserve Open Market Committee are important catalysts for short-term market fluctuations.

How to apply macroeconomics to investing?

1. Judging Trends: Combine Federal Reserve policies with the dollar index trends to determine market fund flows and plan ahead.

2. Flexible Response: Remain cautious during interest rate hike cycles, focusing on defensive assets; boldly position in high-risk assets during interest rate cut cycles.

3. Seeking Opportunities: When inflationary pressures ease and the Federal Reserve shifts to a loose policy, it is the golden window to enter cryptocurrencies and US stocks.

Summary

Macroeconomics acts like a market weather vane; understanding the underlying logic allows you to navigate market fluctuations with ease. Mastering macroeconomics enables you to ride the waves of cryptocurrency and US stocks, seizing every opportunity for wealth!