In the era of inflation, the poor consume and spend more and get poorer, and the rich buy assets and buy more and get richer. If inflation is not controlled, there will be a huge gap between the rich and the poor. It is no longer 20% of the rich who control 80% of the wealth. 2% of the rich own 98% of the wealth.
Today's point of view
Long-term rating: Overweight
Short Cycle Rating:
Bitcoin accumulation
Lighten up in small-cap cryptocurrencies
Today's point of view
Last night, a number of media reported that the White House plans to propose a tax increase plan. The White House intends to double the capital gains tax rate for wealthy groups to 39.6%. This means that after adding the existing surtax on investment income, the federal capital gains tax rate for wealthy US investors with an annual income of more than $1 million will reach 43.4%.
In addition, the U.S. Republican Party submitted a $568 billion infrastructure bill to replace Biden's $2.3 trillion U.S. infrastructure plan.
Affected by the news, global capital markets fell under pressure, with the US Nasdaq and Dow Jones down 0.94%, and the S&P down 0.92%.
Investors believe that the increase in capital gains tax will lead to adjustments for wealthy investors in the United States with more floating profits. Investors will raise their investment costs to the highest possible level and pay most of their current profits before the tax increase bill is enacted.
Yesterday, with the strong upward attack of Ethereum, the proportion of Bitcoin’s market value reached 50% of our expected important support point. With the decline of the capital market, the proportion of Bitcoin’s market value quickly rebounded to 52%.
Bitcoin hit a new low at the daily level in this morning's trading, and investors need to carry out risk control. Nevertheless, we believe
The downtrend for Bitcoin is coming to an end for the following reasons.
First, as the main driver of this round of bitcoin bull market, the tax increase news in the US market did not substantially promote the rapid decline of bitcoin
Second, the news of Biden’s tax increase is a bearish release. We noticed that when Biden proposed a 2.3 trillion infrastructure bill, the global capital market reveled, but the bill did not receive the support of the opponent party. The Republican Party’s 568 billion infrastructure bill is a huge step back. This round of tax increase bill will be greatly hindered in the United States, and the final tax increase is expected to be far lower than the current news level
Third, although the tax avoidance behavior of investors may put pressure on the capital market for a period of time in the future, we remind that even if the bill is passed, sufficient time will be reserved for its implementation, and US qualified investors and fund managers will not kill them. fall for tax avoidance.
Fourth, today's Bitcoin daily RSI may enter the oversold stage, which only occurred when 312 and Bitcoin fell from $12,500 to $10,000. If investors believe that the Bitcoin bull market is not over, the current point will be a rare buying point
Investors are requested to look at the market rationally, and at the same time to carry out appropriate position control, avoid killing or stampeding.
