The appreciation of the RMB has led major banks to warn that the exchange rate will hit 4-5!

Over the weekend, the most discussed topic was the appreciation of the RMB. Historically, Japan's deflation also led to a period of yen appreciation for a simple reason: the central bank believed the economy was resilient and was reluctant to significantly cut interest rates. In this regard, the domestic situation is quite similar now. However, behind substantial appreciation lies a compromise in international trade; when the prices of goods sold increase, competitiveness in international trade declines. Originally, the demand for imports was low and had no effect on stimulating the economy; instead, the overall GDP would be affected.

The appreciation of the RMB will also encourage capital to further flee overseas for arbitrage, and the story of Mrs. Watanabe will play out again. Can capital controls really be effective? If not, entering the cryptocurrency and stablecoin markets serves the same purpose.

Last Friday, the concerns about the triple witching day did not lead to any special market movements. The US stock market has been rising for a long time, which is truly enviable. Over the weekend, there was little action in the BTC market. This week, as we approach Christmas, let's hope there are no unexpected issues, and we will continue to observe. #加密市场观察