The Fed’s overnight reversal reverse repo, which recovers liquidity, is charted below and is setting new all-time highs. on June 14, it was $2.223857 trillion. It’s safe to say that the banks in the U.S. are supporting the Fed’s violent rate hike. This, means that the Fed is raising rates today, either by 75 or 100 basis points.
Overnight reversal reverse repo, is the same money, is the United States banks to the Fed to earn overnight interest. Banks are actually not bad this little interest, so 2.22 trillion dollars stuffed in the past, is to encourage the Fed: you are violent to raise interest rates ah! This, is a very important signal. It’s as if the U.S. banks are saying to the Fed, “We’re ready, raise it!
The positive for BTC is that the Fed released water to lower interest rates. So, the Fed raised interest rates to scale down BTC and it plummeted. Where is the bottom of it, no one knows, next, it depends on whether the leveraged funds investing in BTC will burst. The bottom of BTC will only appear after this wave of position explosion is over. the bear market of BTC has come. It’s inflection point lies in the Fed’s interest rate hike to the top, U.S. inflation back down, and then the market expects the Fed to cut rates, and then, as BTC’s leveraged funds have exploded, the bottom, where the price is already located, will bottom out along with U.S. stocks.
A blowout in the cryptocurrency world would trigger a chain reaction in the U.S. financial markets that would very likely spread like the subprime mortgage crisis.
The 3-month U.S. bond yield, now at 1.79%. 3 months later is September, and the September Fed FOMC will have is 20-21, that is to say, in a few days, the 3-month U.S. bond yield will include the September rate hike and will certainly break 2%.
