RMB deposit interest rates are falling, is the opportunity for Crypto Assets holders coming?

On May 20, a number of large state-owned banks and some joint-stock banks announced that they would cut the listed interest rates of RMB deposits again, which was like a breeze blowing into the financial market, seemingly gentle but with far-reaching power. For ordinary people, the money deposited in the bank is a little less valuable, and in the financial corner, some "new faces" secretly raise the corners of their mouths - for example, the cryptocurrency market.

The "returns" on savings are getting smaller.

First, let's see which "cheese" was moved by this interest rate cut:

The interest rate on demand deposits has dropped to 0.05%, which is almost negligible;

The interest rate for a two-year fixed deposit has decreased to 1.05%, for a three-year fixed deposit to 1.25%, and for a five-year fixed deposit to only 1.30%;

Notice deposits and agreement deposits have also "shrunk".

If you have 100,000 yuan in the bank, after a year the interest is less than 1,300 yuan, and it may not even keep up with inflation. For many people, the original plan to rely on bank deposits to "preserve value" is becoming increasingly difficult.

Money also has "thoughts" - it wants to find a way out.

Money is smart; it doesn't like to stay in places where it doesn't grow. As bank deposit interest rates decrease, people naturally look for ways to "make their money work harder."

Traditional financial products, stocks, and funds are still options, but they face a complex market, sluggish expectations, and even require a certain level of professional knowledge. In recent years, however, a "new star" has been continuously attracting attention—the Crypto Assets market.

Although the prices of virtual currencies such as Bitcoin and Ethereum are highly volatile, their "high risk high return" characteristics just happen to appeal to a portion of investors. Especially in an environment where the Intrerest Rate continues to decline, Crypto Assets seem to appear "more vibrant".

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The "opportunity window" for Crypto Assets has opened a crack again.

In a way, the interest rate cut is a way for the central bank to release liquidity, and it also means that "money" will flow more easily. And where will all this flowing money go? Some of them may go into real estate, some of them may go into the stock market, and some of them may go into crypto assets.

For the Crypto Assets market, this is actually an "opportunity window." Investors might think: since banks can't make money, it’s better to take some risks and try those "potentially rising" digital coins. Coupled with recent good news like Bitcoin halving and Ethereum 2.0 upgrade, this market is regaining its vitality.

The risk is still there, but the choice has changed.

Of course, it must be pointed out that the risks of the Crypto Assets market have never disappeared. It is like a moody child, sometimes ecstatic and sometimes temperamental. But compared to the increasingly "quiet" Interest Rates, this "temperamental" friend of Crypto Assets is attracting more and more attention.

Not everyone can endure such a volatile investment approach, but against the backdrop of interest rate cuts, people are reassessing the balance between "risk and return."

It's not about encouraging risk-taking, but about seeing the trend clearly.

This time, the reduction in the Renminbi deposit Intrerest Rate seems to be just a small adjustment within the bank, but in reality, it is quietly changing people's asset allocation logic. In the future, more and more people may take some funds out of the "bank" as a safe deposit box and attempt to invest in the unknown "playground" of Crypto Assets.