Trump's "Erdogan Mistake" and the Bitcoin Consequence

[Crytononame]

Donald Trump has announced that he is set to take greater control over the Federal Reserve. During his first term, he appointed two people, and he could appoint another after dismissing Lisa Cook.

Twelve people decide on interest rates, chaired by Jerome Powell, who is set to step down in the first half of 2026. However, Trump claims that interest rates will start to fall earlier.

A soft monetary policy is a positive growth signal for Bitcoin, so why has the cryptocurrency been falling steadily since Trump announced his imminent control over the Fed? This is because a Turkish-style scenario could repeat itself.

Recep Tayyip Erdoğan also wanted to lower rates, and by 2019 he had gained control of the central bank. The easing of policy took place against a backdrop of rising inflation, defying economic orthodoxy. No miracle happened: price growth turned into hyperinflation and it was only the presidential election that forced Erdogan to abandon his unorthodox interest rate management.

Inflation in the US is just beginning to accelerate. The US economy has also consumed around 15% of Bitcoin's issuance. Perhaps BTC will grow in the first months of the Fed's rate cuts, but then rates will have to be raised to unimaginable heights and major companies will have to sell off their cryptocurrency.

The topic of the US national reserve will also be completely buried, along with Trump's business empire, which has staked everything on cryptocurrency. The United States may trigger the harshest crypto winter in Bitcoin’s history.

 

[alurosu]

The United States may trigger the harshest crypto winter in Bitcoin’s history.

I think you might be right in terms of the price in dollars, but not in percentage. There's a lot of money in crypto. As time goes on, it gets harder and harder to move the market. Big moves aren't so big anymore.

 

[Crytononame]

I think you might be right in terms of the price in dollars, but not in percentage. There's a lot of money in crypto. As time goes on, it gets harder and harder to move the market. Big moves aren't so big anymore.

Recently I’ve seen daily drops of around -5%, and even now Bitcoin has pulled back 13% from its highs. Investments from big players have grown tenfold, yet they still can’t reduce volatility or even stop BTC dominance from declining.

 

[metersaver]

Interesting take. Short term BTC might pump on looser policy, but if inflation spirals like in Turkey, it could trigger a brutal correction and long crypto winter.

Donald Trump has announced that he is set to take greater control over the Federal Reserve. During his first term, he appointed two people, and he could appoint another after dismissing Lisa Cook.

 

[shijin]

Even with interest rate cuts, large institutional sell-offs could tank BTC prices.

 

[zaiu1776]

Probably see 220k BTC before scenario occurs

 

[Crytononame]

Even with interest rate cuts, large institutional sell-offs could tank BTC prices.

If we stick to the theory of economic cycles, we’re looking at 4 years of rate cuts under Trump. So why would institutions rush to sell BTC?

Probably see 220k BTC before scenario occurs

Bulls need to hold the 100K level for the rally to continue. If the Fed refuses to cut rates in September, that level won’t hold.

 

[AriaAstrologer]

I think you might be right in terms of the price in dollars, but not in percentage. There's a lot of money in crypto. As time goes on, it gets harder and harder to move the market. Big moves aren't so big anymore.

you are really underestimating liquidity in these markets.

some big whale dumps and can tank the price

 

[india]

Donald Trump has announced that he is set to take greater control over the Federal Reserve. During his first term, he appointed two people, and he could appoint another after dismissing Lisa Cook.

Twelve people decide on interest rates, chaired by Jerome Powell, who is set to step down in the first half of 2026. However, Trump claims that interest rates will start to fall earlier.

A soft monetary policy is a positive growth signal for Bitcoin, so why has the cryptocurrency been falling steadily since Trump announced his imminent control over the Fed? This is because a Turkish-style scenario could repeat itself.

Recep Tayyip Erdoğan also wanted to lower rates, and by 2019 he had gained control of the central bank. The easing of policy took place against a backdrop of rising inflation, defying economic orthodoxy. No miracle happened: price growth turned into hyperinflation and it was only the presidential election that forced Erdogan to abandon his unorthodox interest rate management.

Inflation in the US is just beginning to accelerate. The US economy has also consumed around 15% of Bitcoin's issuance. Perhaps BTC will grow in the first months of the Fed's rate cuts, but then rates will have to be raised to unimaginable heights and major companies will have to sell off their cryptocurrency.

The topic of the US national reserve will also be completely buried, along with Trump's business empire, which has staked everything on cryptocurrency. The United States may trigger the harshest crypto winter in Bitcoin’s history.

When politicians mess with central banks, it usually ends badly. Central banks should be independent.

Bitcoin might pump short-term from rate cuts, but if inflation gets out of control, the Fed will have to slam the brakes hard. That could trigger a massive crypto crash worse than anything we've seen before.

Hard times ahead....