日本

The Japanese government responds to inquiries about Bitcoin reserves: The volatility of crypto assets is inconsistent with the current foreign exchange system

ChainCatcher news, according to Coinpost, the Japanese government has made an official response to Senator Akira Hamada's inquiry regarding "the promotion of Bitcoin reserves by the United States and other countries." Akira Hamada previously suggested on December 11 that "Japan should follow the example of the United States and other countries and consider converting part of its foreign exchange reserves into Bitcoin and other crypto assets."In response, the Japanese government stated that it has not yet fully grasped the relevant movements of the United States and other countries, believing that discussions in other countries about introducing Bitcoin reserves are still ongoing, and "the government finds it difficult to take a position on specific situations." According to the legal framework governing special accounting operations, "crypto assets do not fall under foreign exchange," and the current foreign exchange reserves aim to maintain the stability of foreign currency assets and foreign currency bond markets.The response document repeatedly emphasizes that ensuring the safety and liquidity of foreign exchange reserves is the top priority of special accounting operations, implying that the volatility of Bitcoin and other crypto assets is not compatible with the current system.

SoSoValue: Today's market risk sentiment VIX index has risen to its highest point since early August (when the Bank of Japan raised interest rates). The market may be overreacting, and it is recommended to maintain risk exposure

ChainCatcher message, according to the SoSoValue macro sector display, on December 18th, at the interest rate meeting, the Federal Reserve lowered interest rates by 25 basis points as expected, bringing the target range for the federal funds rate down to 4.25%-4.50%. For the rate cut pace next year, the Federal Reserve adjusted its expectations from "four rate cuts" to "two" through the latest dot plot. In addition, the Federal Reserve raised its expectations for future core PCE inflation and GDP growth, which is consistent with Powell's remarks, all conveying a more "hawkish" signal than the market expected. Data shows that the market risk sentiment VIX index rose to its highest point since early August (when the Bank of Japan raised interest rates).SoSoValue analysts stated that the FOMC proposed an unexpectedly aggressive rate cut plan, coupled with Powell's "hawkish" remarks, led to a shift in market sentiment towards panic, with U.S. Treasuries even overreacting. The U.S. stock market subsequently corrected, while the dollar strengthened. Overall, all risk assets reacted strongly to the FOMC's latest signals. Based on macro data, we believe that the fundamentals of the U.S. economy remain unchanged, the dollar remains strong, and consensus-driven assets such as cryptocurrencies continue to be a destination for capital inflows. Each market correction driven by sentiment in the game is a good entry point, and we recommend maintaining risk exposure at this time.
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