Crytononame
Senior Member
- Oct 24, 2024
- 804
- 442
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.
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.
