A few days ago, the market was turbulent due to uncertain news and uncertain factors. In the past two days, when the news was almost confirmed, the market began to rebound as expected, and the market sentiment gradually stabilized. Today we mainly discuss two issues. Last night The Federal Reserve meeting and the recent rumors of SEC supervision.
secondary title
Fed meeting resolution
In the early hours of Thursday, Beijing time, the Federal Reserve announced that it would maintain the zero interest rate level and the $120 billion monthly bond purchase scale, and said that it may formally shrink the bond at the November meeting, in line with market expectations. But the Fed brought forward the rate hike to next year.
The Fed statement said: "If progress is broadly in line with expectations, the Committee believes that the pace of asset purchases may soon be slowed." constant. Federal Reserve Chairman Jerome Powell said that if the economy continues to make progress, a gradual tapering of bond purchases may begin soon and will be completed around mid-2022.
Powell pointed out that the conditions for raising interest rates are still far from being met. If the US inflation rate remains at a high level in 2022, the Fed may meet the conditions for raising interest rates.
It is expected that interest rates will not be raised in the short term. However, everyone has found that although the results of the Fed meeting during this period are not raising interest rates as expected by the market, the Fed will always include two sentences in its speech to say, "If inflation is so bad , will consider raising interest rates”, we understand this as calming the market, so that the market will not cause panic due to short-term inflation, but in fact, this inflation will continue, because once the Fed’s actions reflect the interest rate hike If there are traces, the probability of the market collapsing immediately will be even greater.
secondary title
SEC regulation
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler (Gary Gensler) said on Tuesday that he wants to bring cryptocurrencies "into the public policy framework" and wants to ensure that cryptocurrencies are regulated and meet policy objectives, so that this fast-growing industry It will not "destabilize the system".
Regulating cryptocurrencies may seem like bad news to many, but it is not. In addition to being controlled, regulation also has a hidden meaning, that is, compliance. When an investment product is compliant, more formal funds will be involved.
In fact, recently, you can see that more and more traditional financial institutions, including large asset management institutions such as Goldman Sachs, JPMorgan Chase, and Fidelity, have begun to intervene in the encryption field. They will only intervene in this market after they have a better understanding of compliance information. These asset management institutions are more worried about compliance than ordinary people. And when they can be regulated, they will intervene more actively than ordinary people, because they have a lot of assets in their hands. Even under normal circumstances, it is not a reasonable management method for asset institutions to have a lot of cash assets in their hands, not to mention our In the above-mentioned continuous inflation that may occur in the past two years, holding cash in your hands is depreciation. At present, in the financial markets around the world, there is no investment product that has a higher rate of return than the encryption field.
Anyone who knows Gensler knows that the chairman of the SEC is very professional in the field of encryption and has taught courses related to the encryption market before, so he will know better how to regulate the encryption market without destroying its original principles. characteristics, as he said "so that this fast-growing industry will not "destroy the stability of the system." Sex is getting bigger and bigger, will they kill the industry? It is unlikely that they will only use this industry to maximize their own interests.
All in all, these two recent news are good news, but they need to give them time to cash in, and users themselves should also pay attention to choosing some "correct encrypted assets". Following the mainstream is the least risky way.
Risk warning: Investing in digital currency is a high-risk investment behavior. The content of this article is for reference only and does not constitute investment trading advice. Investors are requested to invest rationally: investment is risky, and caution is required when entering the market.
