There are 10 days, we can put this in 2018 after the general turmoil. However, it would love to toss the Yankees, don’t seem to want to end the fighting so fast.
Beijing time on December 20th at 3 in the morning, the Fed’s monetary policy after the announcement, the decision to raise interest rates by 25 basis points, the federal funds rate target range up to 2.25%-2.5%.
This is the fourth time this year to raise interest rates, but also a period of three years to start raising interest rates to raise interest rates ninth times, it is the first time since 1994, when the stock market fell in the face of interest rate. At the same time, the Fed will raise interest rates two times that in 2019.
First, the current interest rate for 40 years is rare “?
According to a recent survey of Wells Fargo, most of US retail investors said that the Fed should stop 12 month hike.
The loudest opposition from President Trump, he is the fed to raise interest rates to almost unbearable point.
This year, Trump has repeatedly publicly criticized the Federal Reserve and the Federal Reserve Chairman Powell, he even said that the Fed’s monetary policy “Crazy”, that “the interest rate is too high”.
On Tuesday, the Fed rate hike on the eve of Trump made a final statement on twitter, he said:
I want the fed to people before another mistake, can read today “the Wall Street journal” editorial. Don’t let the market become more illiquid. Stop shrinking sheet. To feel the market, do not just look at the meaningless numbers. Good luck！
But after Trump threatened not to talk, the Fed’s performance in the stock market so bad situation of interest rate is extremely rare.
In fact, this is since 1994, the Fed for the first time in the market under the brutal tightening. At present, the S & P 500 index in the past 3, 6 and 12 months were down, raising interest rates 76 times since 1980, only 2 increase occurred in this context.
Although the S & P 500 index in the half of the bear market, banking stocks and transportation stocks after another slump, but some of the key economic data still support the fed to tighten policy.
Two, U.S. stocks A shares fell to call mother
A message, the three major U.S. stock index crashed diving plunge, Qi Chuangnian low.
Among them, the creation of “myth” of the five technology giants FAANG, generally fell about 30%, not to mention other common stock.
Of course, “first down as” A shares and other Asian markets and the European stock market, recently have not been idle, also followed stocks fall with mom.
For the fed to raise interest rates, currency circle buddy are more concerned about the issue is whether the Fed’s monetary policy has an impact on the currency market?
The answer is yes.
Three, bitcoin soared?
The Federal Reserve to raise interest rates, other assets falling splinters, but money price is for a few days to rise, 3000 bits from near line low to now exceed 4000 lines, has risen to $1000, can be said that the rebound is very strong, and the ETH from $more than 80, rebounded to $110, up EOS 8 dollars.
Of course, the most strong rebound is BCH, pulled directly from the 80 to the 210 line of violence, rose more than two times, this is the most fierce, thought in BCH was dismembered in bifurcation war last month, the result was miraculously revived.
Why will rise?
Interest rate include the reduction of money supply, consumption, suppress fighting inflation, to encourage savings, reduce market speculation and. The main purpose is to let the money back to the United States, strengthen the dollar, it will make bitcoin prices.
Why do you say that?
First, strengthen the dollar interest rate, bring the exchange rate rise, that enhance the purchasing power of the dollar, and stable currency pegged to the dollar’s natural rising purchasing power to buy more coins, natural rose. We found that the past few days have been USDT from 6.8 yuan rose to 7 yuan. This is an evidence of. Secondly, after the rate hike, bitcoin global capital return a perfect channel in the United states. Especially the strict control of capital outflow countries, many people will buy bitcoin, bitcoin by bypassing the regulatory and exchange controls, the transfer of $.
So a short period of time, the dollar interest rate to digital currency rose market.
Of course, the bitcoin may also be the cause of futures rose.
But we need to pay attention to is, if it is caused by the Federal Reserve to raise interest rates, then, bitcoin may usher in a new round of slump, has a significant negative impact on the digital currency market.