A few hours ago, a meeting of the Federal Reserve was held, leading to a general decline in the cryptocurrency market.
Mainstream cryptocurrencies generally fell by about 10%.
Actually, Powell's speech at the meeting was relatively standard, but there are still two pieces of information that attracted everyone's attention.
First, it was decided to lower the benchmark interest rate by 25 basis points, reducing the target range of the federal funds rate from 4.5% to 4.75% to 4.25% to 4.50%, which meets market expectations.
However, subsequent interest rate cuts may not come so quickly. When asked about the conditions for continuing to lower rates, Powell indicated that considering factors like inflation and unemployment, the probability of a rate cut in January is very low.
But actually, everyone does not need to worry too much; Powell also stated that interest rates are not expected to rise in 2025, so we are still in a rate-cutting cycle.
Another point is that when reporters asked Powell about Trump's idea of establishing a strategic Bitcoin reserve after taking office, he said: "We (the Federal Reserve) are not allowed to hold Bitcoin; (the Federal Reserve Act) specifies what we can own, and we do not wish to change the law. This is something for Congress to consider, but we do not want the Federal Reserve to change the law."
Upon hearing this,$BTC Bitcoin promptly fell:
But Powell's remarks are actually quite normal; (the Federal Reserve Act) is indeed something for Congress to consider, and the Federal Reserve is just an executing agency that acts according to the law.
Moreover, under the leadership of the United States, many other countries around the world are also starting to reserve Bitcoin, including Russia, which has had a large amount of foreign exchange confiscated due to the war.
And in Brazil, according to the proposed legislation submitted on November 25, the strategic Bitcoin reserve (RESBit) will account for 5% of Brazil's international reserves. Its goal is to diversify the assets of the Brazilian Treasury.
Polish presidential candidate Sławomir Mentzen also advocates establishing a strategic Bitcoin reserve and supports friendly laws and regulations for cryptocurrencies in Poland.
Japanese lawmaker Satoshi Hamada submitted a formal request to the legislature in December, hoping to discuss the establishment of a national Bitcoin reserve in Japan.
Moreover, the Bitcoin Policy Institute in the United States has drafted an executive order proposing to establish a strategic Bitcoin reserve under the U.S. Treasury's Exchange Stabilization Fund (ESF) during the Trump administration, which only needs to be signed after Trump is inaugurated to take effect.
The general meaning of this order is that the president can manage BTC as a permanent national asset under the authorization of the Constitution.
The general direction of the government's entry into Bitcoin has not changed, and the price of the currency has never just risen steadily.
In the future, we will welcome the Christmas holiday. From the end of this month until Trump's inauguration, various news should be released, congratulations to everyone for the good opportunity to buy Bitcoin at the bottom~
Currently, the price of Bitcoin has not actually retraced much; compared to last month, it has risen a lot, and this curve does not stir any waves in the minds of seasoned investors.
As Trump's inauguration day approaches, there are not many days left to increase holdings for friends~
