China’s central bank (PBOC) is kinda easing up on things by keeping interest rates low and pumping more money into the system. That means inflation for the Yuan is just getting started. Meanwhile, in the U.S., unemployment claims are up, but interest rates are still high at 4.5%, so they have no choice but to keep tightening things up.
China is making money flow easier, while the U.S. is trying to keep things tight. To stop all the U.S. money from flowing into China, the U.S. is slapping tariffs. But once the tariffs kick in, the U.S. will also have to stimulate its own economy. This means inflation is going to rise everywhere.
The wildest part? The biggest money is going into AI and robots. The U.S. is even replacing immigrants with robots—McDonald’s already has locations that run with zero humans, from cooking to washing dishes.
For today’s market moves:
Morning (UTC+6): Market starts green thanks to Japan’s inflation and manufacturing numbers pushing things up.
Afternoon: A dip because of Korean whale traders selling off.
Evening: Back up again since U.S. home sales are down but consumer sentiment (Unmich) is up.
Late night: Short sellers (like Wintermute) might push it red again.
Overnight: It should bounce back as liquidity flows in.
Looking at the bigger picture, Bitcoin should end next week higher since it’s been red for three weeks straight. My guess? December will be sideways, January will correct a bit (but not crash), February will be green, and March will be a chill month—good for altcoins. Oh, and don’t expect the Fed to cut interest rates in March.
Walter Bloomberg: CHINA’S PREMIER LI: WILL DIRECT MORE ECONOMIC POLICY FOCUS ON BOOSTING CONSUMPTION
Now, about China—its government wants people to spend more, so they’re making money easier to get. How? By raising government salaries, cutting taxes, lowering mortgage down payments, and even giving subsidies. The goal is to make people feel like cash is easy to come by, so they don’t hoard it. But guess what? That leads to inflation.
FinancialJuice: PBOC VOWS TO HELP REAL ESTATE MARKET TO STABILIZE AND STEM THE DECLINE IN THE HOUSING MARKET
And the real estate market? Governments always say they’ll “help” it because real estate is where they get their money. Homelessness has existed forever, yet there are always empty homes. Why? Because empty houses keep prices high. The more houses there are, the more expensive they get—it’s a weird economic rule. You think more supply = lower prices? Nope. The system ensures you end up paying double for your house—one for you, one for the bank.
Cointelegraph: ALERT: JPMorgan warns of a potential crypto market correction due to declining BTC & ETH demand on CME futures, institutional profit-taking, and key US crypto initiatives delayed until the second half of 2025.
Lastly, JPMorgan is warning about a crypto correction because demand for BTC and ETH futures is weak. My take? Opposite of JPMorgan. The real bull market is coming from Asia, not the U.S. Forget ETFs, halvings, or U.S. politics—this is all about China dumping its Yuan and sending Bitcoin to the moon.
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