Central Banks Worldwide Begin Rate Cut Cycle, Crypto Assets Market Welcomes New Opportunities

The USD/JPY exchange rate is one of the important indicators of the current macroeconomy. To alleviate the pressure of the yen's depreciation, the central banks of the G7 countries are taking measures to narrow the gap with Japanese interest rates. This means that other central banks, aside from the Bank of Japan, will begin to lower their policy interest rates.

Recently, the Bank of Canada and the European Central Bank have taken the lead in cutting interest rates, even though the current inflation level remains above the 2% target. This move is quite unusual, as traditionally central banks only lower interest rates when inflation is below the target. This indicates that the G7 may be seeking solutions to the yen depreciation issue.

The upcoming G7 meeting will be closely watched. The post-meeting communiqué may hint at the future direction of monetary policy, including whether coordinated actions will be taken to support the yen, or whether other Central Banks outside of Japan will continue to cut interest rates.

The Federal Reserve's policy choices are particularly critical. Although it typically does not adjust policies on the eve of a presidential election, the current situation is exceptional. If the Federal Reserve unexpectedly lowers interest rates at the June meeting, the USD/JPY exchange rate could drop significantly. However, considering that inflation is still a hot issue for voters, the Federal Reserve may choose to remain on hold for the time being.

The meeting of the Bank of England is also worth paying attention to. Although the market generally expects interest rates to remain unchanged, the Bank of England may surprise after rate cuts from the Bank of Canada and the European Central Bank.

The shift in global monetary policy is creating a favorable environment for the crypto assets market. Since the birth of Bitcoin in 2009, crypto assets have been a powerful tool to address the shortcomings of the traditional financial system. In the current macroeconomic situation, investors may consider increasing their holdings of Bitcoin and other crypto assets. For emerging crypto projects, now may be an ideal time for token issuance.

As the global monetary environment gradually becomes more accommodative, a bull market for Crypto Assets may be on the horizon. Investors should closely monitor the direction of the Central Bank and adjust their investment strategies in a timely manner to seize the new round of market opportunities.