Today, we witness a series of traditional indicators reaching ATH. The market #Crypto and $BTC is still in a gloomy state, without significant capital flowing in. When will we wait until? Please provide your opinion.
President Trump may announce the nominee for the new Fed Chair as early as the first week of January, and data from Polymarket shows that 61% are leaning towards Mr. Kevin Hassett, Director of the National Economic Council. $BTC $ETH $LINK
🇭🇰 HONG KONG INSURANCE AUTHORITY CONSIDERS CAPITAL REQUIREMENTS FOR CRYPTO
🔸 The Hong Kong insurance authority is proposing new capital regulations related to crypto assets.
🔸 Insurance companies investing in crypto will face a 100% risk weight, meaning they must have sufficient capital to cover the entire investment.
🔸 Stablecoins may be subject to a lower risk weight if managed in Hong Kong and backed by fiat currency assets.
🔸 This proposal is still in draft form and will be open for public consultation from February to April.
🔸 The authority stated that the goal is to update insurance regulations to align with new developments in crypto and stablecoin management. $XRP $LINK $ETH
MicroStrategy has increased its USD reserves by an additional 748 million USD and is currently holding a total of 2.19 billion USD.
PS. Previously, the company had 1.4 billion USD in cash, enough to cover about 21 months of interest and dividends. With this additional reserve, if the spending rate remains the same, the current amount could last for about 33 months, almost 3 years. *** Can we trust that they will not sell $BTC in the near future? *** Please leave your comments so we can discuss further. #MicroStrategy $LINK
Today there is a lot of news about the Fed pumping about 6.8 to 7 billion USD into the financial system tomorrow through repurchase agreements (repos). Many people call this quantitative easing (QE), but that's not entirely accurate.
A repo is essentially a very short-term loan. The Fed lends cash to banks, while the banks provide high-quality assets as collateral. After a very short period, typically just one day, the banks repay the Fed and get back their collateral. This is a tool the Fed uses regularly to manage daily liquidity.
The purpose of this operation is to ensure that the system always has enough cash, to prevent short-term interest rates from spiking, and to avoid stress in the short-term capital market. Such actions are particularly common at the end of the year when liquidity can temporarily tighten.
It's important to understand that this is not QE, not money printing, and not a signal that the Fed is loosening monetary policy because the money has to be repaid, but it also indicates that liquidity is still challenging.
Simply put, this is periodic maintenance of the financial system. Just like adding oil to an engine, it helps the market run smoothly while the Fed continues to adjust overall monetary policy for 2025. $BTC $ETH $BNB