Today, as noted in the news, the Chinese regulator has been intervening in the financial markets. Bloomberg news agency records the largest inflow of cash investments in equity ETFs. But! Usually, when regulators step in and carry out serious interventions, the first thing that happens is strong changes in currency quotes. However, the Chinese Yuan is unchanged and continues to consolidate near all-time highs with no clear supply at this price. Judging by the reaction of market participants, these measures are not enough, and more confidence and action by the regulator is needed. It is likely that there is still a strong dollar and maybe Chinese government economists know more than the average market? Maybe they are hoping for a weak job market in America on Friday? Obviously not. Why are they holding dollar liquidity? I think it will be known soon. Most likely, Taiwan is still in question.
Bitcoin Uncertainty
Bitcoin (BTC) experienced a decline in early trading on Friday, September 6, following a more than 3% drop the previous day. Market participants had anticipated a 25 basis point reduction in the federal funds rate, which could potentially boost the legacy cryptocurrency. However, Bitcoin has fallen around 24% since its record high on March 14, due to a lack of new narratives to drive bullish sentiment.
