As soon as CPI came out, the odds of a rate hike shot up to 95.6%, and Bitcoin got knocked below $73K. The one in the whole crypto market that may be least worried about that number is rwusd.
Let’s check the record: In the post on the 6th, I said it was a parking lot—unable to keep up when prices rise, but not dropping a cent when they crash. Over the past five days, Bitcoin fell from around $76K to $73.4K, and ETH dropped to $2,040. But rwusd has stayed around 0.9994 against the dollar, fluctuating by only about one-thousandth over the past week. My view hasn’t changed.
Why isn’t it worried about rate hikes? It’s backed by U.S. Treasury yields. If rates really go up in December, short-term Treasury yields will rise along with them, making the yield underpinning rwusd even stronger. Other coins fear rate hikes will drain liquidity; rwusd is actually on the side of higher rates.
Of course, there’s no price movement to trade on either—around 0.9994 is the whole story.
Big Brother’s take is still the same: this is a place to take shelter, not a place to make money.
After the rate hike takes effect, where do you think money will go first: to hide in stablecoins, or to buy the dip in Bitcoin? #RWUSD $RWUSD
Let’s check the record: In the post on the 6th, I said it was a parking lot—unable to keep up when prices rise, but not dropping a cent when they crash. Over the past five days, Bitcoin fell from around $76K to $73.4K, and ETH dropped to $2,040. But rwusd has stayed around 0.9994 against the dollar, fluctuating by only about one-thousandth over the past week. My view hasn’t changed.
Why isn’t it worried about rate hikes? It’s backed by U.S. Treasury yields. If rates really go up in December, short-term Treasury yields will rise along with them, making the yield underpinning rwusd even stronger. Other coins fear rate hikes will drain liquidity; rwusd is actually on the side of higher rates.
Of course, there’s no price movement to trade on either—around 0.9994 is the whole story.
Big Brother’s take is still the same: this is a place to take shelter, not a place to make money.
After the rate hike takes effect, where do you think money will go first: to hide in stablecoins, or to buy the dip in Bitcoin? #RWUSD $RWUSD
