Recently, this wave of rise is essentially the market betting on the end of the tapering cycle. The Fed has injected some liquidity into the system, and liquidity has eased, but to say there is a real trend reversal? We still have to see when the SLR will be relaxed.
The two key signals mentioned earlier—the halt of the balance sheet reduction has been realized, and the other is the SLR regulation. In simple terms, SLR is a "balance sheet expansion limit" set for banks, which restricts banks from loosening liquidity. Once this thing is canceled or relaxed, then the real liquidity floodgates will open, and the market may welcome a substantial turning point.
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PretendingToReadDocs
· 12-02 21:09
If this SLR thing really loosens up, that would be a black swan; right now, this level of rise is nothing.
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SchrodingerGas
· 12-02 21:00
The loosening of SLR is the real long positions signal, and this current rise is just an appetizer, don't be fooled.
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ZkProofPudding
· 12-02 20:56
If SLR doesn't loosen up, the rise will be fake, and it will eventually come back.
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HashBrownies
· 12-02 20:53
In simple terms, we are just waiting for the Fed to make a move; as long as SLR is not loosened, we are just running alongside.
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AmateurDAOWatcher
· 12-02 20:43
Um... this hurdle of SLR is really stuck, the banks want point shaving but have no way, they can only wait.
Recently, this wave of rise is essentially the market betting on the end of the tapering cycle. The Fed has injected some liquidity into the system, and liquidity has eased, but to say there is a real trend reversal? We still have to see when the SLR will be relaxed.
The two key signals mentioned earlier—the halt of the balance sheet reduction has been realized, and the other is the SLR regulation. In simple terms, SLR is a "balance sheet expansion limit" set for banks, which restricts banks from loosening liquidity. Once this thing is canceled or relaxed, then the real liquidity floodgates will open, and the market may welcome a substantial turning point.