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Degen Ape Trader
@degenapetraders
The One and the Only Degen Ape Trader channel.
https://x.com/Degen__Ape__
Degen Ape Trader (English)
Are you interested in the world of trading and looking for the latest trends and insights? Look no further than the Degen Ape Trader channel on Telegram! This channel, with the username @degenapetraders, is the go-to destination for all things related to trading, investing, and the financial markets.
Degen Ape Trader is not just any trading channel - it is the one and only channel you need to follow to stay ahead of the game. With a focus on providing valuable information and analysis, this channel helps traders make informed decisions and maximize their profits.
Whether you are a seasoned trader or just starting out, Degen Ape Trader has something for everyone. From market updates and trading strategies to tips and tricks for successful trading, this channel covers it all. Join a community of like-minded traders and investors who are passionate about maximizing their profits and staying informed about the latest trends in the financial markets.
Don't miss out on the opportunity to join the Degen Ape Trader channel today. Click on the following link to join: https://x.com/Degen__Ape__
Degen Ape Trader
05 Aug, 12:58
So why is everything down today?
- The Fed has kept the rate at 5.5% for too long. People prefer to park money in T-bills rather than investing, starting new businesses, or even going to work. This has led to a 4.3% unemployment rate and disappointing NFP data.
- Additionally, the CPI has been decreasing for the last three months, leading to increasing fears of a recession (no more soft landing).
- During COVID-19, the Fed could print money and cut rates to 0% to address problems. However, with a potential recession, the Fed lacks such tools. They can't cut rates too quickly or implement QE without risking a spike in inflation, which would undermine their efforts over the past two years.
- The current consensus is that the Fed will cut rates by 50 basis points at the next meeting, followed by another 50 basis points in November, and then 25 basis points at each subsequent meeting, aiming to reduce the rate to 2.5%-3% by the end of 2025.
- The issue is that this could lead the U.S. and potentially the entire world into a recession lasting over a year, similar to 2008.
- Meanwhile, the BOJ has decided to raise rates to 0.25%. The JPY, known for its low interest rates, allows people to borrow JPY at around 1% and then swap it for USD to earn 5.5% from T-bills (USD/JPY carry trade) or invest in the stock market, either in Japan or abroad.
- With the rate hike and a hawkish stance from the BOJ, people are concerned that borrowing costs will rise, prompting them to unwind carry trades or sell off investments to cover capital (de-risking).
- Additionally, thereโs a WW3 narrative in the Middle East, which adds further pressure.
- As a result, stocks are selling off everywhere; investors want to exit while the door is still open.
- On Sunday, Jump Trading moved a significant amount of ETH and other coins to exchanges. Their risk management team or quant likely calculated that failing to sell first could lead to severe losses.
- Jumpโs aggressive selling drove the ETH price below $2,800. On Monday, as the Japanese stock market continued to decline, the entire crypto market started to risk-off aggressively, leading to one of the largest crashes since 2022.
This kind of market behavior usually doesnโt resolve in just 1-2 days but rather over weeks or months. It's important to stay calm and monitor macro data and the Fed's response.
At worst: This could be the beginning of a new downtrend, potentially leading to a prolonged bear market lasting 1-2 years.
At best: If the next set of macro data comes in better than expected, it could reduce the likelihood of a major recession. In that case, prices might oscillate for a while before returning to an uptrend.
- The Fed has kept the rate at 5.5% for too long. People prefer to park money in T-bills rather than investing, starting new businesses, or even going to work. This has led to a 4.3% unemployment rate and disappointing NFP data.
- Additionally, the CPI has been decreasing for the last three months, leading to increasing fears of a recession (no more soft landing).
- During COVID-19, the Fed could print money and cut rates to 0% to address problems. However, with a potential recession, the Fed lacks such tools. They can't cut rates too quickly or implement QE without risking a spike in inflation, which would undermine their efforts over the past two years.
- The current consensus is that the Fed will cut rates by 50 basis points at the next meeting, followed by another 50 basis points in November, and then 25 basis points at each subsequent meeting, aiming to reduce the rate to 2.5%-3% by the end of 2025.
- The issue is that this could lead the U.S. and potentially the entire world into a recession lasting over a year, similar to 2008.
- Meanwhile, the BOJ has decided to raise rates to 0.25%. The JPY, known for its low interest rates, allows people to borrow JPY at around 1% and then swap it for USD to earn 5.5% from T-bills (USD/JPY carry trade) or invest in the stock market, either in Japan or abroad.
- With the rate hike and a hawkish stance from the BOJ, people are concerned that borrowing costs will rise, prompting them to unwind carry trades or sell off investments to cover capital (de-risking).
- Additionally, thereโs a WW3 narrative in the Middle East, which adds further pressure.
- As a result, stocks are selling off everywhere; investors want to exit while the door is still open.
- On Sunday, Jump Trading moved a significant amount of ETH and other coins to exchanges. Their risk management team or quant likely calculated that failing to sell first could lead to severe losses.
- Jumpโs aggressive selling drove the ETH price below $2,800. On Monday, as the Japanese stock market continued to decline, the entire crypto market started to risk-off aggressively, leading to one of the largest crashes since 2022.
This kind of market behavior usually doesnโt resolve in just 1-2 days but rather over weeks or months. It's important to stay calm and monitor macro data and the Fed's response.
At worst: This could be the beginning of a new downtrend, potentially leading to a prolonged bear market lasting 1-2 years.
At best: If the next set of macro data comes in better than expected, it could reduce the likelihood of a major recession. In that case, prices might oscillate for a while before returning to an uptrend.
Degen Ape Trader
01 Aug, 10:42
ByBit ร Degen Trading Tournament 2.0 : Up to $50,000 in Rewards
We are hosting another tournament with ByBit. More participants + more volume = bigger prize!
Ranking will be based on your P&L%, and you need at least $10,000 in volume to be eligible.
The trading competition will run for 30 days, from August 4th until September 4th.
Registration starts today: August 1st - August 4th.
Competition link: https://www.bybit.com/en/trading-contest/game/?name=degenapearena&affiliate_id=78350
We are hosting another tournament with ByBit. More participants + more volume = bigger prize!
Ranking will be based on your P&L%, and you need at least $10,000 in volume to be eligible.
The trading competition will run for 30 days, from August 4th until September 4th.
Registration starts today: August 1st - August 4th.
Competition link: https://www.bybit.com/en/trading-contest/game/?name=degenapearena&affiliate_id=78350
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