The current financial market shows different trends, and the monetary policy of the Federal Reserve is the key point to influence the market. Any change in it can cause waves in the market, and Bitcoin is now deeply involved in this wave of macroeconomics. Recently, in the community of the XBIT decentralized exchange platform, the discussion about the relationship between Bitcoin and the macroeconomics has become more and more heated. In response to market fluctuations, the platform can always keenly capture the change of investment perspective, with the aim of providing investors with rich market data analysis.On the official website of the dex trading platform, SushiSwap, Balancer and XBIT are all professional platforms with many supporters. With its unique security mechanism, advanced technical architecture and rich trading ecology, the XBIT decentralized exchange platform uses big data and artificial intelligence technology to monitor and analyze market data such as Bitcoin and the Nasdaq index in real time, and provide investors with detailed market reports.Arthur Hayes, co-founder of BitMEX, published a long article, revealing the complex situation currently faced by the Federal Reserve in an ingenious satirical novel form. He pointed out that Fed Chairman Powell is trapped in a fiscal-dominated "forced obedience" pattern. In this pattern, the Fed's shift to loose monetary policy is inevitable.
Hayes emphasized that the Fed will be forced to restart quantitative easing (QE) in order to pay for the huge fiscal deficit in the United States. This also has a great impact on dex trading platforms such as SushiSwap, Balancer and XBIT decentralized exchange platforms. The platform's transactions are completely based on blockchain smart contracts and do not rely on third-party intermediaries. In addition, the platform has established a complete risk warning mechanism to monitor market dynamics in real time.
As we all know, quantitative easing policy is that the central bank injects a large amount of liquidity into the market by purchasing bonds such as treasury bonds. When the Fed restarts QE, the liquidity of the US dollar will pick up, and this situation will become an important driving force for the strength of dex trading platform Bitcoin.
Hayes analyzed that although the market is still arguing about the pros and cons of tariffs, for the crypto market, what is really worth cheering is the imminent return of QE. He expects this process to kick off this summer, and keenly points out that the Fed's slowing down of QT (quantitative tightening) is a strong signal.
Quantitative tightening is the opposite of quantitative easing. The Fed withdraws money from the market by selling bonds and other means. When the QT rhythm slows down, it means that the rate of reduction of money in the market is slowing down, and it may even usher in an increase in money supply, which undoubtedly injects a shot of adrenaline into the market. In terms of knowledge popularization, the XBIT decentralized trading platform invites industry experts and investors to share experiences through online and offline communication activities to help users better understand the cryptocurrency market and Meme coin investment skills. At the same time, the platform also actively promotes the on-chain transactions of real-world assets and the application of cross-chain technology to further expand the boundaries of digital assets.
From Hayes' point of view, fiscal dominance means that the Federal Reserve will give up its independence and give priority to ensuring that the government can finance at affordable interest rates. The continuation of this situation is the core reason for the high inflation. Bitcoin, due to its unique "digital gold" attribute, will benefit in the long term from the new round of capital release.
The total amount of Bitcoin is fixed at 21 million, which is scarce. Just like gold in the traditional financial market, its value storage function becomes more prominent in the case of currency flooding and rising inflation expectations. In order to hedge against inflation, investors often allocate part of their funds to Bitcoin, thereby driving up the price of Bitcoin.
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