Lao Cui said: "In the cryptocurrency circle, a bull market is bound to come again!"

CN
1 year ago

The world is bustling, all for profit; the world is bustling, all for profit! Hello everyone, I am your friend Lao Cui Shuobi, focusing on the analysis of cryptocurrency market trends, striving to deliver the most valuable market information to the majority of coin friends. Welcome the attention and likes of the majority of coin friends, and refuse any market smokescreens!

I'm a little late today. The recent market fluctuations have been truly distressing. There's not much to say about the overall trend. It's almost no different from our previous predictions. It's still in a period of oscillation. I want to remind everyone here that in the near future, whether it's long or short, there won't be a significant trend. Don't be swayed by the wind, thinking it's a bull market when it rises, and feeling bearish when it falls. Currently, it's still an oscillating market. Today, let's talk about the macro impact on us. Gold can be said to have performed almost on par with the cryptocurrency market recently, which has led to coin friends comparing Bitcoin with gold. The trends of these two were almost identical before 2020, including the frequency of price increases. Today, we will focus on the analysis of the gold exchange rate and the cryptocurrency market.

First of all, since the start of gold trading, the price has reached a historical peak, which is not a short-term high, but the pinnacle of all mankind. Why has this phenomenon occurred? It simply reflects the safe-haven nature of gold once again. Why does the term "safe-haven" appear? This just proves Lao Cui's point of view that the US dollar's currency trust system is gradually collapsing. It's simple. When people mention currency, they will think of the US dollar because this currency is linked to energy. To put it more simply, when using euros or bitcoins to directly trade energy, the seller will not engage in the transaction unless it's in US dollars. This phenomenon is also due to the nearly century-long layout by the US, and the advantages of early development are still very obvious.

Why do we say that the US dollar's currency system is gradually collapsing? That's because of the excessive issuance of the US dollar in the past two years, leading to global inflation. To put it in simpler terms, almost all of the US's development is supported by a financial system based on borrowing. The annual interest on national debt is nearly 1.4 trillion, while the US's military expenditure is actually less than 1 trillion. Over time, and with the use of various investments, this has created such a huge repayment pressure. It can be said that the US has been living on borrowed time, and its operations before this have always been supported by third world countries. To illustrate with a country that everyone in the cryptocurrency market is familiar with, El Salvador is one of the third world countries that supports the US. They have a small population, and their largest source of foreign exchange income is working for the US, doing some low-level work. And the hourly wage is far below the US market standard. The reason for all this is that El Salvador has used the US dollar loan system, making it unable to handle its own repayments in a timely manner.

Interest will continue to accumulate, but these small countries have no ability to resist. Their industries are not developed, and their financial systems are also not sound. In order to break free from US hegemony, it can be said that they are staking their entire national destiny, placing their hopes on the cryptocurrency market. Fortunately, Bitcoin is worthy of any investor. As a result, El Salvador cleared all its debts at the onset of the bull market. Small countries wanting to break free from the control of big countries indeed need a certain amount of opportunity and courage. Losing this group of small countries as a source of income, the situation facing the US can only be excessive issuance and crazy printing of dollars to repay its own debts. From the moment this decision was made, it was destined that the US would go downhill. The increase in the quantity of US dollars will inevitably lead to the devaluation of the currency in everyone's hands. The devaluation of the US dollar also means the devaluation of all currencies because it is linked to energy. The decrease in purchasing power will also lead to the collapse of the credit system.

This has also led everyone to invest crazily in other investment markets, especially with our forward-looking vision. Our central bank has been buying gold for 17 consecutive years. Everyone's investment focus is on the central bank. It can be said that 17 years ago, we had already anticipated today's situation. The cryptocurrency market has also benefited from this. In order to maintain the value of the currency in hand from devaluation, we can only invest in other markets. This is also why Japan is now encouraging people to invest in the stock market. There are now no longer people willing to foot the bill for the US. At this point, everyone will surely have doubts. If the devaluation of the US dollar is inevitable, why not use the US dollar system?

Because so far, we cannot bypass the US dollar's currency system. Whether it's in the military or financial field, the US is still dominant. Energy will definitely be linked to the US dollar. What we can do is to minimize our country's inflation. Combined with the devaluation of the US dollar and the appearance of later interest rate reduction strategies, it is actually not only a good thing for the cryptocurrency market, and not just for gold. For the entire financial market, there will be an explosive growth, and many markets will reach historical highs. It's just that the performance of the cryptocurrency market and the gold market will be better than other markets. The devaluation of the US dollar will lead to more and more technical means of cashing out and investing in the cryptocurrency market, and the same goes for gold.

This is also why Lao Cui said that the bull market in the cryptocurrency market may not have arrived yet. This statement applies to all markets, of course, except for our domestic real estate market. The construction industry will usher in new opportunities, which is consistent with our recent strategy of major infrastructure renovation. However, this round of major infrastructure renovation does not include real estate developers. Most of it is related to roads and basic construction. There is almost no connection with new real estate developments, at most just renovating old residential areas. For those in the construction industry, pay attention to the recent trends. This is indeed a new opportunity for ordinary people.

Through this analysis of the underlying logic, for the overall trend, the future of the cryptocurrency market is definitely bullish. This long-term trend has always been Lao Cui's unchanged view. Especially with the US dollar exchange rate already showing a downward trend, it is destined that the depth of the pullback below will not be too deep. It's just that the current exchange rate is still relatively high, and there is not much capital entering the entire cryptocurrency market, coupled with the recent gold market, which can be said to have diverted a large portion of the capital. The amount of funds that can be invested in the cryptocurrency market is very limited. So, the recent trend is very predictable. It won't be too high or too low, which is what we call an oscillating market. In the medium term, there will be no bull or bear market. The appearance of these two situations will only be possible after the US's interest rate reduction strategy triggers a decline in the exchange rate.

For ordinary people like us, we must closely monitor the changes in the USDT exchange rate and the military trends. The landing of the interest rate reduction will definitely lead to a surge of funds into the cryptocurrency market, and as long as there is an interest rate reduction this year, Bitcoin will once again challenge new historical highs. It's just that for the medium term, for users who want to hold spot positions, you can take advantage of the pullback in the market to buy Bitcoin. The pullback provides an opportunity for everyone to enter the market, and you must seize the space for each round of pullback.

Lao Cui's message: Investment is like playing chess. A master can see five, seven, or even a dozen moves ahead, while a novice can only see two or three moves. The master considers the overall situation, plans for the big picture, and does not focus on individual moves or territories, with the ultimate goal of winning the game. The novice, on the other hand, fights for every inch, frequently switching between long and short positions, only fighting for short-term gains, and frequently ends up in trouble.

Original article created by public account: Lao Cui Shuobi. If there is any infringement, please contact the author to delete.

This material is for learning and reference only and does not constitute investment advice. Any buying or selling based on this material is at your own risk!

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