The Federal Reserve will continue to have negative interest rates.

ZB Academy
4 min readSep 24, 2021

On September 24, the Federal Reserve kept the benchmark interest rate unchanged at 0% — 0.25%, in line with market expectations. In addition, the discount rate was kept unchanged at 0.25%, which is currently determined by the decision of the members of the Federal Reserve.

ZB Research Institute statistics show that the US employment report and inflation data in August are lower than expected. Previously, the Federal Reserve said it would start to reduce the scale of bond purchase before the end of 2021. Some analysts believe that the relevant plans of the Federal Reserve will not consider raising interest rates in the short term. It is expected that the first interest rate increase will be carried out in September or December in the second half of 2022. A series of actions by the Federal Reserve show that economic growth may not be as strong as expected for the rest of 2021. Forcing negative interest rates to promote the formation of inflation is tantamount to drinking poison to quench thirst, and the long-term stimulus effect does not appear immediately. Inflation will not be seen until at least the beginning of 2022. If the current policy continues, the U.S. debt will rise to a new high again and will last until at least the first half of 2022.

The ZB Research Institute believes that the US economy has reached a relatively critical moment through the macro analysis. The real economy is constrained by the epidemic situation, and the excessive liabilities of the financial industry in the 2021 are over foaming. All the economic situations have pushed the capital of the United States to accelerate its integration into the cryptocurrency field. The Fed’s recent research on the central bank’s digital currency has also verified this point. Fed chairman Powell said that the support of most members is needed to determine the central bank’s digital currency, and the investment in real-time payment is also ongoing. All trends show that the US economy has not allowed capital to continue to grab benefits in the traditional financial field.

On September 24, Cambrian Asset Management, a quantitative hedge fund in the United States, announced on Wednesday that it would launch a bitcoin trust and an ethercoin trust, further confirming the ZB Institute’s judgment on the U.S. macro economy. According to ZB Institute, the two trusts will charge a management fee of 4%, about twice that of Grayscale bitcoin trust.

ZB Research Institute believes that the action of U.S. quantitative hedge fund Cambrian Asset Management will open the outlet for accelerating the injection of U.S. capital into cryptocurrency. The volume of US financial capital will support the current cryptocurrency market at around US$2 trillion in the eight months from 2021 to mid-2022. At least in the next 3 to 5 months, the influence of capital will continue to form an influence in the field of cryptocurrency.

On September 24, bitcoin magazine tweeted that Dubai allows bitcoin transactions in the tax-free economic zone.

On September 24 news, Huawei will release its new operating system openEuler on September 25. Recently, Ren Zhengfei said that Euler is making great strides. Euler’s positioning is aimed at the operating system and ecological base of the national digital infrastructure, and undertakes the historical mission of supporting the construction of a leading, reliable and secure digital infrastructure.

According to the statistics of ZB Research Institute, as of September 24, 2021, encryption and blockchain start-ups have obtained about US $19 billion of venture capital this year, with an annual growth of 300%. In 2020, this data bit is US $6.4 billion.

ZB Research Institute believes that the global market value expansion of cryptocurrency is under way. As early as in the relevant research articles around September 21, ZB Research Institute has pointed out that the decline in the value of cryptocurrency has not brought a large number of selling behavior in the market. Therefore, it does not rule out the possibility that some capital deliberately suppress the market to attract funds when they are optimistic about the market trend in the medium and long term. After that, the rapid rebound of the market also confirms this view, and the data of market venture capital entry also shows that the expansion rate of the market has exceeded any period in the history of blockchain. Therefore, the spiral trend of cryptocurrency market still exists and will further play an important role in the global financial field.



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