📉 U.S. interest rate hikes and market turmoil: behind the double destruction of both longs and shorts⚠️ U.S. stocks crashed again, and the entire crypto market liquidated positions
🔹 Interest rate hike and China:
The 11 interest rate hikes targeting China did not collapse the Chinese economy. Instead, the United States itself fell into the shadow of recession. The interest rate hikes have actually dragged down the economies of U.S. allies, making life increasingly difficult.
🔹 US stock data crashed:
After a wave of data was released, U.S. stocks crashed directly. Yesterday, the amount of liquidated positions in the entire crypto market reached US$300 million. New non-agricultural employment in the United States in July was far lower than expected and the previous value, the unemployment rate was close to the highest in three years, and market panic triggered another collapse in U.S. stocks. The Dow Jones Industrial Average fell about 990 points during the session.
🔹 The game of interest rate hikes and interest rate cuts:
Fears of a U.S. recession have intensified, and the market has significantly increased bets on interest rate cuts this year, exceeding 100 basis points. The 11 interest rate hikes some time ago failed to work, and instead put recessionary pressure on the U.S. economy.
📉 Market outlook for the future
🔍 Signs of recession:
The Federal Reserve interest rate is currently at an all-time high. This high interest rate environment has caused many people to choose to deposit their money in banks and earn interest instead of working. A rate cut in the future is almost certain, perhaps even to 50 basis points.
🔮 Impact of interest rate cuts:
While expectations of interest rate cuts may seem positive, the crypto market will not be immune if the economy collapses. There may be good news before September, but the eventual rate cut may instead trigger a market decline.
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