Feds made the WORST mistake since 2007...
last time it's started the Great Financial Crisis
I compared markets and was shocked...
here's how they manipulate you and what will happen to crypto 🧵👇
last time it's started the Great Financial Crisis
I compared markets and was shocked...
here's how they manipulate you and what will happen to crypto 🧵👇
But before I start...
I've put a lot of effort and time into this research and share a lot of alpha totally FREE. If you don't mind, please like and retweet the first tweet and FOLLOW me - @DeFiTracer
This will help me provide you with even more ALPHA, thank you 🫶
I've put a lot of effort and time into this research and share a lot of alpha totally FREE. If you don't mind, please like and retweet the first tweet and FOLLOW me - @DeFiTracer
This will help me provide you with even more ALPHA, thank you 🫶
✜ Yesterday, the Federal Reserve acknowledged their MISTAKE and lowered the interest rate for the first time since 2020 by a full 50 basis points.
✜ Inflation has significantly decreased, but the Fed is still far from reaching its target rate levels.
✜ Is this really a bullish piece of news, and is Bitcoin heading for new all-time highs?
✜ Inflation has significantly decreased, but the Fed is still far from reaching its target rate levels.
✜ Is this really a bullish piece of news, and is Bitcoin heading for new all-time highs?
✜ Since this rate reflects the state of the U.S. economy and the global economy as a whole, $BTC is heavily influenced by it.
✜ The Fed rate itself is the interest rate at which banks lend to each other.
✜ Historically, a Fed rate cut leads to an increase in $BTC market capitalization, and vice versa.
✜ The Fed rate itself is the interest rate at which banks lend to each other.
✜ Historically, a Fed rate cut leads to an increase in $BTC market capitalization, and vice versa.
✜ During periods of economic growth, the Fed keeps the base rate low, which stimulates investment.
✜ In such times, high-risk assets are the most attractive to investors.
✜ However, a rate hike leads to a recession, prompting investors to increase savings, sell high-risk assets, and seek a “safe haven.”
✜ In such times, high-risk assets are the most attractive to investors.
✜ However, a rate hike leads to a recession, prompting investors to increase savings, sell high-risk assets, and seek a “safe haven.”
✜ This happens because when the Fed raises rates, banks increase loan rates for individuals and businesses.
✜ As a result, investments become more expensive for people.
✜ This also slows down the economy and reduces demand for almost everything.
✜ As a result, investments become more expensive for people.
✜ This also slows down the economy and reduces demand for almost everything.
✜ After understanding what the Fed rate is, let's draw parallels with the Fed's actions during two key periods and now:
- The 2007-2008 financial crisis
- The Crypto Bull Market of 2020-2021
✜ By thoroughly studying those events, one can arrive at quite interesting conclusions
- The 2007-2008 financial crisis
- The Crypto Bull Market of 2020-2021
✜ By thoroughly studying those events, one can arrive at quite interesting conclusions
✜ In 2007, the start of the subprime mortgage crisis led to the Global Financial Crisis, which initiated the restructuring of the financial sector.
✜ If you believe in numbers, on September 18, 2007, the Fed first lowered the rate from 5.25% to 4.75%.
✜ They eventually brought the rate down to a record low of 0-0.25%
✜ If you believe in numbers, on September 18, 2007, the Fed first lowered the rate from 5.25% to 4.75%.
✜ They eventually brought the rate down to a record low of 0-0.25%
✜ But at that time, it wasn't just the Fed's rate that led to the crisis, but also:
- Weak regulation of complex financial instruments
- Delayed recognition of the crisis's scale
- Prolonged maintenance of low interest rates
- Inadequate oversight of subprime lending
- Weak regulation of complex financial instruments
- Delayed recognition of the crisis's scale
- Prolonged maintenance of low interest rates
- Inadequate oversight of subprime lending
✜ Although the Fed is now more experienced, @CryptoHayes remains pessimistic.
✜ According to his first prediction, the era of central banks will end, and we are heading toward a situation similar to 2007.
✜ The demand for tokenization and various technologies may decline if rates stay low for too long.
✜ According to his first prediction, the era of central banks will end, and we are heading toward a situation similar to 2007.
✜ The demand for tokenization and various technologies may decline if rates stay low for too long.
✜ However, his opinion has recently adjusted slightly.
✜ Now he urges everyone to watch the USDJPY pair closely like a hawk:
- Weak JPY = Strong BTC
- Strong JPY = Weak BTC
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✜ Now he urges everyone to watch the USDJPY pair closely like a hawk:
- Weak JPY = Strong BTC
- Strong JPY = Weak BTC
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✜ The situation in 2020 during the COVID era showed that rate cuts don’t always lead to negative outcomes.
✜ The Fed learned from the bitter experience of 2007 and responded with much faster and more confident support.
✜ All measures were aimed at stimulating consumption and liquidity.
✜ The Fed learned from the bitter experience of 2007 and responded with much faster and more confident support.
✜ All measures were aimed at stimulating consumption and liquidity.
✜ In 2020, the Fed cut rates and launched massive asset purchase programs that maintained liquidity.
✜ Overall, all necessary actions were taken to preserve and improve the economy.
✜ During this period, $BTC reached a then-record high of $60,000.
✜ Overall, all necessary actions were taken to preserve and improve the economy.
✜ During this period, $BTC reached a then-record high of $60,000.
✜ In conclusion, we see that the Fed rate is only one of many factors in the global economy, and thus, the markets.
✜ In 2007, the Fed faced its first crisis, from which they gained substantial experience.
✜ Later, in 2020, they managed to solve a HUGE problem, which allowed the market to grow, even though rates were lowered.
✜ In 2007, the Fed faced its first crisis, from which they gained substantial experience.
✜ Later, in 2020, they managed to solve a HUGE problem, which allowed the market to grow, even though rates were lowered.
✜ My personal advice: if you're holding assets, don’t even think about selling or fixing anything.
✜ You’re on the verge of a pivotal time that could bring life-changing gains in the future.
✜ Significant drops are possible, but $100,000 for $BTC will be reached soon
✜ You’re on the verge of a pivotal time that could bring life-changing gains in the future.
✜ Significant drops are possible, but $100,000 for $BTC will be reached soon
In a few days, I'll start running $1,000+ giveaways, giving calls in my TG channel
Make sure to follow, while it's still open for FREE!
Also I am running giveaway here rn, make sure to participate.
Link: t.me
Make sure to follow, while it's still open for FREE!
Also I am running giveaway here rn, make sure to participate.
Link: t.me
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• Like, retweet, and leave a comment 👾
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• Follow me @DeFiTracer for more exciting content!
• Like, retweet, and leave a comment 👾
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