Oligarchy, where a small group of powerful elites control everything, and everyone lives in fear of them.
When the Federal Reserve cut interest rates by 25 basis points, many institutions and retail investors already knew it was a foregone conclusion. The positive impact of the rate cut did not provide the impetus for an upward movement, as this momentum had already been consumed in advance. But the more difficult part is that Chairman Powell has closed the door to public consultation on future rate cuts, bluntly stating that he will wait to observe the specific implementation results of Trump's new policies and inflation data before responding, implying that further rate cuts will be micro-operations and have little effect in the short term.
Is the water in the Yangtze River warm or cold? Powell is a prophet! Powell said the US economy is generally performing strongly and has made significant progress towards the Federal Reserve's targets over the past two years. The labor market has cooled somewhat from its previous overheating state, but remains robust. Inflation levels are now closer to the Federal Reserve's long-term 2% target. He also said that even if the inflation rate next year is only 2.5%, the Federal Reserve may still cut interest rates next year as shown in the dot plot, because inflation will be moving in the right direction.
But what is more damaging to cryptocurrencies is that Powell stated at the meeting that the Federal Reserve is not allowed to hold Bit, nor does it have plans to hoard Bit, which has dealt a negative blow to the previously rumored 1 million Bit strategic reserve plan.
Is Powell saying this is not the case, or is this not under his jurisdiction?
First of all, the 1 million Bit reserve plan was not proposed by Trump, but by Republican Senator Cynthia Lummis of Wyoming. This proposal seems to be more of a political gesture to cater to Trump's super Bit kingdom, with the specific operation being to sell the Federal Reserve's gold over 5 years and buy 1 million Bit, using the appreciation bonus of Bit to hedge against US debt.
How much gold reserves does the Federal Reserve have? According to the Federal Reserve's balance sheet, the certificates representing the gold held by the Treasury Department are worth about $11 billion. At the current spot price, the value of this gold is about $675 billion. Taking away one-sixth to appease the Bit president, leaving a huge hole in other expenditures without a safety net to lower the international credit of the US dollar and US debt? Powell has been losing sleep over the lack of fuel for economic growth, let alone expecting him to bleed for the competitor of gold, Bit. Even if the big boss Trump says this has to be done, a Bit strategic reserve law would have to be legislated, and it should be implemented by the Treasury Department rather than the Federal Reserve.
Everyone knows the situation of the US fiscal situation. The landlord's family has no more food either. The government's fiscal deficit in 2024 alone will reach $1.833 trillion, an increase of $133 billion from the previous year. This money is just enough to buy 1 million Bit, but the problem is that this is borrowed, not earned. Even if you tighten your belt to death, you can't squeeze out any more oil. Are you going to rob?
To be honest, it's necessary to occasionally take out the old skills and show them off while you can still move, now the US government holds more than 20,000 Bit, which were obtained through fines, collateral and money laundering investigations, such as the 95,000 Bit stolen from the exchange Bitfinex by hackers, which were turned over to the Treasury when the two were imprisoned, as well as the 69,000 Bit from the founder of the Silk Road underground drug market and the 50,676 Bit stolen by his subordinates in a black-on-black robbery, all of which are stored in hardware wallets controlled by the Department of Justice, the Internal Revenue Service or other agencies. Occasionally, a certain department sells a small amount to solve fiscal difficulties, but most of it is still in cold storage, a windfall profit that fits well with the "legal justice" of the West and is easy to stimulate the fishing law enforcement of the Anglo-Saxon nation, using the big stick of regulation and litigation to achieve the enrichment of cryptocurrencies, after all, in a bull market, the increase in wealth litigation cases and the activity of hacker attacks, the "correctness" of law enforcement is difficult to guarantee the safety of every cryptocurrency victim, more is to freeze or turn over to await the verdict, unable to provide a reasonable and legal source of income, then sorry, national security threats and collusion with hostile countries will always have a hat to put on your head.
So in a bull market, you can always hear about blowouts, runaway hacks, and attacks, but more opportunities for wealth creation tend to produce a 7-second memory, it can't be that unlucky to happen to me, right? The source of the short-term users who gamble on fate and opportunities is mostly cannon fodder, the positive impact of Trump's economy has gradually narrowed, cryptocurrencies are not the top priority of the new policy, and it may take a while to see the introduction of cryptocurrency-friendly policies. This vacuum period will generate a lot of variables, which is the arrival of the shock period, whether to fish in troubled waters or cash out at high positions depends on your own skills, but the old saying is that only what is in your pocket is yours, numbers are just virtual wealth.
