The Fed held another meeting early this morning, but because the meeting had little impact on the situation, the market did not pay much attention.
In the early hours of this morning, the Federal Reserve meeting mainly announced two new repurchase facilities, namely the standing repurchase liquidity facility and the standing FIMA repo liquidity facility. These two tools have similar functions, but at this stage In fact, the effect is not great, so the market impact is relatively limited.
But at present, the monetary policy is more and more worthy of attention. We have said that if this rhythm and recovery situation continue, the Fed will raise interest rates sooner or later, unless there are some objective factors that hinder it. As a result, the economic data in the United States has declined again, but this is currently too uncertain. Some asset holders may indeed have such expectations, but the objective facts are indeed better than market expectations.
Therefore, we can only look forward to the other side, that is, whether it is possible for cryptocurrencies to be more integrated into government use and daily life.
This aspect seems to be a fantasy, because the current specific regulatory policies have not yet come down, and the US government may not take the lead in this regard, but in fact, cryptocurrencies have indeed been gradually integrated into government expenditures.
U.S. Senator and Bitcoin proponent Cynthia Lummis said massive government spending is accelerating cryptocurrency adoption, asserting that a declining dollar is driving citizens to store value in digital assets such as Bitcoin.
On the other hand, the bipartisan infrastructure bill in the United States plans to raise about $28 billion through cryptocurrency taxes by applying new information reporting requirements on exchanges and other parties.
These are increasingly positive signals, at least a symbol of further advancement in the legalization of the use of cryptocurrencies.
At the same time, the frequency of cryptocurrencies appearing in daily life is getting higher and higher, which has to mention the "American Alipay"-Paypal.
According to Coindesk, PayPal’s transaction revenue in the second quarter reached $5.80 billion, a year-on-year increase of 17% and a quarter-on-quarter increase of 3%. According to Coindesk, PayPal’s transaction revenue in the second quarter reached $5.80 billion, a year-on-year increase of 17% and a quarter-on-quarter increase of 3%. Customers who buy cryptocurrencies through the platform log into PayPal twice as often as they did before buying cryptocurrencies.
Next, PayPal is also working on transferring cryptocurrencies to third-party wallets and creating a more seamless tax filing process. During PayPal's second-quarter 2021 investor update conference call today, CEO Dan Schulman said the initial version of the company's Super App Wallet is "code complete" and plans to roll it out across the U.S. in the coming months . The super app wallet will feature high-yield savings, early access to direct deposit funds, messaging capabilities, additional encryption, and more. At that time, the frequency of Paypal users using cryptocurrencies will be further increased.
The rise of Bitcoin and even the entire cryptocurrency market cannot only be expected from the infinite easing of monetary policy. Sooner or later, the policy will be tightened. If the cryptocurrency market does not find a way to deal with it, the situation will inevitably deteriorate. However, through the increase in government spending and the frequency of civilian contact, it will undoubtedly increase the demand for the use of cryptocurrencies, which is also one of the ways to alleviate the crisis of raising interest rates.
Going back to the market, last night the market peaked at $40,900, but then the strength was exhausted. At the lowest point, it returned to $39,000, and then it was almost stable around $40,000. It can be seen that the pressure level of $40,000 is indeed relatively large. It is already the third shock failure.
Even so, the current market has achieved eight consecutive positives on the daily line. Such an upward trend can only be organized after the big negative line appears, otherwise the probability of closing the door is not high. We often say that when the market falls, the sideways market is an opportunity to short, because after the sideways market, the market will still have a high probability of continuing to fall.
And what can be seen as the current situation, is it a rebound in the decline, or a relay after bottoming out? Personally, I still prefer the latter, at least this wave of $10,000 rise is real, as long as there is no big negative line in the process, then $42,000 is not far away.
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