Analysis of the impact of macro factors on Bitcoin price

📩 Join the group for private chat on WeChat: xingmudeyuan 📢 DC community: https://discord.gg/WdGWN5RYAQ The price of Bitcoin is affected by macro factors, including first-level influencing factors, second-level influencing factors and third-level influencing factors. The first-level influencing factors can basically be found and are deeply affected; the second-level influencing factors need to be calculated; the third-level influencing factors are virtual factors, but they can all be seen. The Federal Reserve is the central bank and monetary policy-making institution of the United States. Its responsibility is to stabilize the U.S. financial system and promote economic growth. The Federal Reserve controls the money supply by adjusting interest rates to affect economic activity, employment, and price levels. During the epidemic, the Federal Reserve slashed interest rates to support economic recovery. When the economy overheats and inflationary pressure increases, the Federal Reserve will raise interest rates to reduce the money supply in the market to curb inflation. The impact of the Federal Reserve on financial markets The Chairman of the Federal Reserve Board of Governors will be selected as the Chairman of the FONC and the Vice Chairman of the New York Fed. The Federal Reserve meets at least eight times a year to discuss the economic environment and monetary policy. The Federal Reserve is not for profit and has both the nature of the government and the private sector, restricting the rights of both companies. The market funds used by the Federal Reserve to adjust interest rates are its own and do not come from the Treasury. Its annual profits must be turned over to the national treasury. The Federal Reserve manipulates the world's financial markets by raising and lowering interest rates, affecting federal funds rates, U.S. bond yields, the U.S. dollar index and gold prices. When interest rates are cut, Bitcoin prices rise as money flows into riskier assets. U.S. bond yields fell and Bitcoin rose, with the two showing a negative correlation. Analysis of the correlation between Bitcoin and U.S. debt Bonds are considered the strongest safe-haven assets in the financial market. The capital volume of U.S. Treasury bonds reaches 35.3 trillion U.S. dollars, gold is 18 trillion, and Bitcoin is 2.3 trillion. There is a negative correlation between U.S. debt and Bitcoin. When U.S. debt yields rise, funds will flow out of the Bitcoin market and prices fall; conversely, when the U.S. dollar weakens, Bitcoin prices rise. In addition, factors such as the U.S. dollar index, inflation expectations, and the Federal Reserve’s balance sheet will also affect Bitcoin prices. The impact of Federal Reserve policy and the cryptocurrency market mainly discussed the Open Market Committee’s forecast of future interest rate trends, the Consumer Price Index (CPI), the Producer Price Index (PPI) and the Non-Manufacturing Purchasing Managers Index (ISM-PMI), etc. Economic indicators. These indicators reflect inflation, monetary policy decisions, and the growth of the U.S. economy. Among them, CPI and PPI are important indicators for measuring inflation, and the Federal Reserve will formulate monetary policy based on these data. ISM-PMI reflects the growth of the service industry and has an important impact on the overall economy. Market volatility and the impact of Japanese yen interest rate hikes After the release of ISN and PMI last week, market bond yields were hit, and non-agricultural data further exacerbated market concerns about inflation, causing risk assets to fall. Bitcoin has also been affected. Today, Mr. Hu mentioned on Twitter that the Japanese yen interest rate hike may cause the US stock market and the currency circle to plummet, because Japan has implemented a zero interest rate policy for a long time to stimulate economic growth and inflation. If yen interest rates rise, the arbitrage trade will lose its effectiveness and investors may need to repay their borrowed money, leading to asset sales and market volatility.