$ZEC
A bombshell move! Japan's interest rate hike stabs the US in the back, $38 trillion in US debt is in crisis, is Trump about to unleash a major attack? Should crypto investors buy the dip or run? 一起聊聊
The global financial world is in an uproar! Japan's interest rate hike has put the US in a very difficult position!
Inflation has soared to its peak, the yen continues to fall, and Wada Ueo has completely dropped the pretense. From ending negative interest rates in 2023 to raising rates twice to 0.5% in 2024, the market now unanimously predicts another 25 basis point increase at the December meeting, pushing rates to 0.75%! The cabinet has tacitly agreed, after all, ordinary people can't bear the prices, businesses can't withstand the costs, and if the economy isn't tightened, it will truly collapse.
But this double-edged sword hurts the US the most! The 30-year-old yen carry trade is about to end. Previously, Wall Street giants used low-interest yen to buy US Treasury bonds and profited from the interest rate differential. Now, with yen interest rate hikes, the carry trade opportunity has vanished, and Japan can easily dump its $1.2 trillion in US Treasury bonds! US Treasury yields are soaring, with the 2-year yield hitting 3.5% and the 10-year yield breaking 4.09%. The cycle of selling off $38 trillion in debt seems unstoppable!
The Trump administration is now in a panic! Despite previous spending cuts, the deficit has only increased, heading towards $1.8 trillion in fiscal year 2025. Now, facing Japan's "backstabbing," how will it salvage the situation? Will it pressure Japan to stop raising interest rates, force the Federal Reserve to pause rate cuts, or even resort to trade protectionism to shift the crisis?
Don't panic. This isn't 2008. The economic fundamentals have a buffer, but the old financial order has indeed cracked significantly! Global funds are being reallocated; gold is already in high demand. Will the cryptocurrency market divert this safe-haven capital?
The key question is: how should cryptocurrency traders operate? Should you buy the dip in mainstream cryptocurrencies during market volatility, or hold and wait for the trend to become clearer?
Do you think Trump will take drastic measures to bail out US debt? Will the crypto market benefit from Japan's interest rate hike?
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