The market is collapsing, everyone is confused
I analyzed the FOMC meeting and was shocked
This is how the US government manipulates you👇🧵
)1
❖ Two significant conclusions emerged from the last FOMC meeting:
❖ Interest rates were cut by 25 basis points (Great)
❖ Powell ruled out the possibility of a reserve $BTC (terrible)
❖ Let's analyze what is true and what the market expects
)2
❖ The 25 basis point rate cut is a purely positive development
❖ This encourages greater investment in cryptocurrencies as it increases profitability
❖ The 2021 bull market emerged after similar rate cuts
)3
❖ Powell's Reserve Statement $BTC Shocked the Market, Causing $BTC to Drop
❖ He clarified that the Fed cannot hold $BTC, and no legal adjustments are being considered
❖ Does this mean that there will be no more of them? Let's find out.
)4
❖ The Fed operates as an independent body, free from control by the President or Congress
❖ This means that Congress retains the right to change the laws governing the actions of the Fed
❖ If necessary, Trump could push for changes that would allow the Fed to accumulate any assets, including $BTC
)5
❖ The Fed’s primary role regarding cryptocurrencies appears to be focused on how these assets could impact consumer and banking sector safety
❖ "We regulate and supervise banks, and we want the interaction between crypto businesses and banks ... not to threaten the health and well-being of banks" (c)
❖ But he also noted at the time that when it comes to crypto assets, "we don't regulate them directly"
)6
❖ Claudia Buch, the European Central Bank's chief supervisor, highlighted the risks in the crypto market
❖ Including "excessive leverage, lack of transparency and conflicts of interest", while controlling banks' exposure to these assets
❖ This gives much more room for Trump, because even with these delays, he will still be first
)7
❖ Will this downturn be only temporary? - of course, YES!
❖ Two main factors of this are clear:
1. Target rates for 2025 will be reduced to 400 basis points
2. World Liberty Financial holds $ETH and $WBTC at 65M
❖ This means that this decline was emotional and cleared weak hands for new ATHs
)8 Conclusion
❖ On the one hand, staying away is the safest bet
❖ If you hold, avoid adding more risk
❖ But on the other hand, $277M in liquidations signals weak hands coming out
❖ This rally could lead to a big rally in the near future
❖ In any case, 2025 will be the biggest bull market in history, and there is not much difference between January or March
