Bigwigs fell out, 4 trillion bill became the fuse
When the footage of Musk angrily confronting Trump on Capitol Hill made global headlines, the old hands in the cryptocurrency circle all smelled the unusual smell of gunpowder. The core contradiction of this political struggle, which was called a "trillion-dollar rebellion" by foreign media, was focused on the 4 trillion-dollar fiscal bill that printed money crazily - how could this save the economy? It was clearly using helicopter money to blow the credit of the US dollar into a sieve!
Musk's three Achilles' heel were all hit: Tesla's newly acquired new energy subsidies were cut without warning, the federal deficit soared to $2.4 trillion, and even his most supportive cabinet allies were fired by Trump. Who would have thought that the "plastic brothers" who supported each other on Twitter would now fight for their own interests in a more uglier way than a soap opera, and even a Republican congressman jumped out to call Musk an "undercover planted by Biden". Even HBO screenwriters have to admit defeat at this plot twist.
The three-act drama of the cryptocurrency world: a devilish dance of panic and opportunity
Short-term: Tesla's plunge rings the alarm bell of panic
When Tesla's stock price plummeted 8% in a single day, Bitcoin fell below $42,000, reminding many old investors of the fear of being dominated by the Fed's interest rate hike in 2022. Institutional investors who had followed Musk to buy Bitcoin are frantically calculating the probability of "Iron Man being forced to sell Bitcoin to cover his position", and panic is spreading on the market like a virus.
Medium term: US dollar liquidity is the real benefit for Bitcoin
But knowledgeable players have already done the math: a $4 trillion deficit is equivalent to giving every American $12,000 in welfare. When the Fed's money printing machine is running until it smokes, Bitcoin's anti-inflation narrative is repeating the miracle of 2020. Don't forget the epic market of BTC soaring from $10,000 to $60,000 after Trump spent money. Although history will not simply repeat itself, it always rhymes at key points.
Long term: Which side you choose determines the life or death of a currency
- Musk's victory scenario: Dogecoin and X platform payment system will be pushed to the altar, the MEME coin army is likely to stage a swarm of demons, and those small currencies that he named may suddenly explode
- Risks of Trump taking power: Don’t be fooled by his current slogan of “embracing crypto”. If a redneck really takes over the White House, the SEC’s regulatory mad dogs will only become more ruthless, and the compliance costs of small currencies will skyrocket to the point of suffocation. A wave of delisting may be unavoidable.
Three heartfelt words for the old friends in the cryptocurrency circle
Don't believe what the big guys say about "for the future of America", the essence is a power game with unequal distribution of spoils! Musk is afraid that the bill will destroy the electric car empire, and Trump thinks that the richest man didn't vote in the right place, but we must remember three survival rules:
- The more chaotic the politics, the more valuable the cryptocurrencies: When the fiat currency credit collapses in the deficit tsunami, Bitcoin is the real Noah's Ark
- Musk's words are a double-edged sword: when he calls for orders, don't chase high and be the buyer; when he crashes the market, don't rush to sell. Every crash is an opportunity to pick up bargains.
- Stock up on Bitcoin and keep an eye on MEME: With Ma's hot temper, he might send a tweet one day to make Dogecoin take off. Only by ambushing in advance can you get something to eat.
This trillion-dollar power game has just begun. Do you think Musk will spend $1 billion to buy Bitcoin in a rage? If Trump is elected, will he really dare to do something as magical as "pardoning Satoshi Nakamoto"? The opportunities for getting rich hidden in this gamble are probably more than what Wall Street has calculated!