🔥🔥🔥At 3 AM, the global market will undergo a dramatic change.
Interest rate cuts have become a consensus, but beneath the lights of the festive party, cracks have already begun to show. The market is betting over 80%, having overdrawn all optimism in advance. However, a strange signal is flashing a warning: **Long-term U.S. Treasury yields have not fallen as expected.**
This is illogical. What exactly is the market afraid of? Is it a deep-seated concern about "persistent inflation," or a precaution against an "economic slowdown"? While everyone’s attention is focused on the wording of the Federal Reserve's statements, a more powerful **structural undercurrent** is quietly rewriting the rules of the game—**the rise of compliant stablecoins.**
It is no longer just a payment tool. With the passage of the **GENIES Act**, and the entry of giants like BlackRock and Fidelity, stablecoins are rapidly "devouring" short-term U.S. Treasuries, with the scale soaring past $7.4 billion. It is clearly **not a security**, and must be 1:1 pegged to high-quality assets (mainly U.S. Treasuries). This achieves a dual purpose: on one hand, it creates a huge **new essential buyer** for U.S. Treasuries; on the other hand, it has become a **strategic weapon** for the Treasury to expand the dollar's digital hegemony and seize future financial shares. $ETH $BNB
**What does this mean?**
First, **the interest rate cut trade may “buy expectations, sell facts.”** The S&P 500 is approaching the strong resistance zone at 6900; once the positive news lands, funds may easily take profits from high-flying tech stocks and rotate into other sectors. Keep a close watch on the defense and offense in the 6880-6900 area, with support looking down at 6700.
Second, **the U.S. Treasury market welcomes the “stablecoin anchor.”** New demand supports liquidity, but the Bank for International Settlements (BIS) has warned: when the market reverses, large-scale redemptions could trigger a more violent sell-off than the inflow.
Third, **the narrative logic has changed.** Future volatility will be driven by two main lines: one is the reality correction of interest rate cut expectations; the other is the profound embedding and impact of stablecoins as this “new appetite” on the traditional financial system.
**After tonight, the old revelry ends, and a new game begins. Will you choose to exit before the music stops, or have you understood the new rules and are ready to seize the initiative in the next round?**
