Is Bitcoin really going to zero? The interest rate cut suddenly turned into a rate increase, Warsh’s first thunderbolt after taking office｜Bitcoin｜Warsh｜Interest rate hike｜Federal Reserve｜Debt｜Inflation｜Investment｜Cryptocurrency

Original author：鏈上華爾街 | OGAsia

Original source：https://www.youtube.com/embed/Hy9QLWqdH2A

On June 5, the non-farm payrolls data far exceeded expectations, and the market exploded instantly: with such strong employment, the Federal Reserve has no reason to cut interest rates, and may even raise interest rates. On June 17, at the first interest rate meeting after new Fed Chairman Warsh took office, the dot plot reversed dramatically - 9 of the 18 members expected to raise interest rates before the end of the year. Investors who originally thought Warsh would be a "dove" may be disappointed now. Bitcoin plummeted in response, and the sound of "returning to zero" came again. Today we analyze two things: Can the interest rate hike be sustained? Is Bitcoin really going to zero? Contents of this issue: 📌 Why can’t raising interest rates suppress this inflation? The Iran war has pushed up oil prices, and AI infrastructure has depleted the supply chain - this is supply-side inflation. Raising interest rates has hit demand, which cannot suppress supply, and both sides are unhappy. Warsh - Became the youngest Federal Reserve Board member in history at the age of 35. He grew up under the fire of the 2008 financial tsunami. He hates money printing in his bones and wants to "slim down" the Federal Reserve. 📌 But can he hold on? The national debt is 39.2 trillion, growing by 8.2 billion every day. For every 1 dollar of tax collected, 19 cents are used to repay interest. The interest alone burns nearly 1 trillion in a year📌 Interest rates rise → interest rates increase sharply → the debt becomes even more unaffordable → in the end, money printing is required; money printing → currency depreciation → inflation → pushing up interest rates → another interest rate increase. Two roads, the same end point 📌 One person's will vs. the structural power of a country, who do you think will win? Will Bitcoin return to zero? The Federal Reserve is trapped in the deadlock of "raising interest rates cannot support debt, and printing money cannot support inflation." This deadlock itself is the reason for the existence of Bitcoin. But don't mistake "the market will definitely lose money in the long run" to "it will rise tomorrow." Most people lose money because of this confusion. 🔔 Subscribe to the channel and understand Bitcoin from a macro perspective💬 Do you think interest rates will be raised this year? Tell me in the comment section! 📌Bitcoin introductory series allows more Chinese-speaking people to understand this world-changing technology in their own language https://www.youtube.com/playlist?list=PLA-Mnod_RdEqacLfvix0ARO1AsMPXOmch ⚠️ The content in this issue is for information sharing only and does not constitute investment advice. Please do your own research before investing (DYOR). #Bitcoin#Fed#Raising interest rates