Cryptanalysis expert Banmuxia: The Federal Reserve will lower interest rates and expand its balance sheet this week. Will US stocks/cryptocurrencies/precious metals see a 'general rise for a whole month'?
On December 8, Chinese crypto analyst Banmuxia released 'bombshell news': The Federal Reserve's interest rate cut and balance sheet expansion this week will bring the previously tight market liquidity back to normal — not only will US stocks, cryptocurrencies, and precious metals rise collectively this week, but the entire month of December may also experience a 'general rise'.
This is not his first prediction of a shift in liquidity. As early as the article on November 11, Banmuxia had 'drawn a roadmap' in advance: The Federal Reserve will stop reducing its balance sheet and start expanding it in December, returning liquidity to the loose state of October 2019.
However, the real 'flood' of liquidity will have to wait until May of next year, when Trump takes control of the Federal Reserve, and it is highly likely that it will replicate the level of easing seen in March 2020.
Current market expectations for a shift in Federal Reserve policy are already high. Banmuxia's judgment of a 'general rise for a whole month' has added a bit of 'emotional fuel' for investors in cryptocurrencies, US stocks, and other risk assets.
However, there are also opinions that believe the actual effect after the policy is implemented will depend on the specific strength of the Federal Reserve's actions this time. 'After expectations are fully priced in, one must also guard against the situation where good news turns into bad news.'
Would you like me to help you organize a summary of the mainstream views on the Federal Reserve's policies in the current market?