#When In Doubt, Always Zoom Out🚀
Crypto investment is easy. Hodler always wins (provided you invest in coin with real use case and solid fundamentals).
In the recent FOMC meeting, the Fed still remains with the tone of "higher for longer" interest rate article, and the market is currently still betting the possibility that the Fed will also still hold steady interest rates at the next FOMC meeting in March. Before this, many bet that the Fed will start lowering the interest rate as early as March, but it seems that the interest rate cut may have to wait until the 2nd half of 2024, maybe there is just a little hope.🤔
Why is the US interest rate important? Liquidity.
As long as the Fed's interest rate remains high, the liquidity market will remain slow. With the current global situation, wars here and there, tense China-US relations, possible US internal "civil" war (Texas border crisis), US elections this year, all these circumstances will cause investors to be more inclined to invest in "low" risk investments, namely short term US Treasury debt market. 5%++ ROI in a short period, who wouldn't right?
Btw, there is also an analysis that says there is a possibility of a liquidity crisis in the US banking sector as what happened at the beginning of the year off (SVB, Signature Bank, First Republic Bank) may also be repeated if interest rates remain high. Interest rates are high, people don't make new loans, spend less, and may even spend their savings on living expenses.