China and the United States join forces to attack USDT! Yellen’s Congressional speech suppresses sta

China and the United States jointly attacked USDT, and Yellen’s speech in Congress suppressed stable coins.

China's State Administration of Foreign Exchange took action to suppress USDT at the end of 2023, emphasizing that converting USDT into RMB constitutes illegal foreign exchange trading. People familiar with the matter revealed that major events will occur in March.

Bloomberg reports that Hong Kong’s move to roll out stablecoin rules this quarter has sparked interest, including from the international arm of Harvest Fund Management. Sean Lee, senior advisor and head of stablecoins at VSFG, noted that the Hong Kong dollar reference token could be a “strong alternative” to rivals pegged to the U.S. dollar, given Hong Kong’s well-developed financial industry.

Additionally, U.S. Treasury Secretary Yellen told Congress that the crypto industry poses several potential dangers to the financial system, including the dangers of stablecoins, runs on crypto platforms, and price volatility.

China's new actions come as U.S. Treasury Secretary Yellen appeared before the House Financial Services Committee on Tuesday to explain the specific work of the Financial Stability Oversight Committee, also known as FSOC. Yellen told Congress that the crypto industry poses several potential dangers to the financial system, including the dangers of stablecoins, runs on crypto platforms and price volatility.

It is reported that FSOC is an organization composed of heads of U.S. financial institutions led by Yellen. The committee, which aims to prevent the next financial crisis, has paid particular attention to crypto risks in recent years, ranking them among the top categories of potential concerns.

Yellen said applicable rules and regulations should be enforced, and Congress should pass legislation to regulate the spot market for stablecoins and non-security cryptoassets.

U.S. economic data also brings bad news to Bitcoin. Powell remained cautious, emphasizing the need to watch for a sustained fall in inflation to the core 2% target and hinting that there may not be an interest rate cut in March.

Analysis warns that Bitcoin’s liquidity is exhausted and it is difficult to recover 43,000.

Keith Alan, co-founder of trading tool Material Indicators, issued a new Bitcoin price warning while analyzing the composition of the order book. He said that Bitcoin still lacks liquidity below the spot price, so it could easily return to $42,000.

Zooming out, liquidity is decreasing significantly, indicating what Allen said is a strengthening of bearish sentiment. He said this doesn't mean prices will rise immediately, or even at all, but it does mean there is some sentiment around this level now. In my opinion, liquidity equals sentiment.

Back to the market.

4H, the market fluctuates, continuing yesterday’s triangle, the idea remains unchanged, operating within the aggressive range, and steadily waiting for the breakout. In terms of fundamentals, Master Bao shattered expectations of an interest rate cut in March, and the market bulls are not strong. Wait patiently for a turnaround.

1H, the small level is currently running upwards. The MACD indicator is at a low golden cross and crosses the zero axis. The K-line is above the middle rail. For ultra-short term long orders, look at the upper rail and then consider backhand. The Boll indicator goes back and forth.

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