When the renovation of the Federal Reserve chairman's office is more luxurious than Bitcoin's candlestick chart, the reasons for a market crash increase by one more—this time, it’s a knife personally handed over by Trump!
Event explanation:
Trump's camp fires back: Trump's 'insider,' Mark Pulte, head of the Federal Housing Finance Agency, jumps out and accuses Federal Reserve Chairman Powell to his face, saying he 'lied' and 'deceived' during the congressional hearing about the exorbitant renovation of the Fed headquarters (which supposedly looks like a five-star hotel)!
Direct appeal: Pulte not only scolds but also directly calls out to Congress: hurry up and investigate Powell! Investigate his 'political bias,' investigate his 'deceptive testimony'! This posture clearly indicates a desire to find a 'legitimate reason' to kick Powell off the throne of the Federal Reserve!
Understanding King raises the stakes: Trump himself sees it, and the ammunition is delivered! He immediately forwards the report and directly calls out: Powell, you better resign immediately! This is no longer a hint; it’s blatant political pressure!
Oracle's viewpoint:
‘Mansion Gate’ is just the spark: Over-budget renovation costs? This could be a big deal or a small deal. But in an election year, when Trump urgently needs all the firepower to attack the current government and its 'allies' (though Powell is theoretically independent, he is not in Trump's eyes), this becomes an excellent 'moral stain' ammunition depot. Understanding King’s goal is very clear: tarnish you, swap for a more obedient person!
The independence of the Federal Reserve is in danger! If Trump returns to the White House, Powell, who is chairman until 2028, will absolutely have a harder time than bitter gourd. Remember how Trump publicly insulted Powell as 'the enemy,' 'an idiot,' and 'spineless'? History is bound to repeat itself, and it will be even more intense! The ghost of political interference in central banks is hovering over Wall Street and the crypto world.
Is it a blessing or a curse for the crypto world? In the short term, it may trigger risk-averse sentiments and increased volatility. But in the medium to long term, I see it as a significant potential benefit! Why?
Reason one: The pressure to cut rates is immense! What is Trump's core demand? Low interest rates! He needs low rates to stimulate the economy, boost asset prices (including the stock market and possibly BTC?), and reduce the government's debt burden. Forcing (or intimidating) Powell out is paving the way for a more 'dovish' and obedient chairman. A more 'Trumpified' Federal Reserve means that interest rate cuts could come faster and harder! Think about BTC's performance after the pandemic liquidity injection in 2020? The script may be rewritten.
Reason two: Chaos is a ladder! If the leadership of the Federal Reserve is caught in a political whirlpool, its policy credibility and predictability will be damaged. Traditional financial markets fear uncertainty the most, and funds will instinctively seek ‘non-mainstream’ safe havens—cryptographic assets like Bitcoin and Ethereum, which are large enough in scale and strong enough in consensus, will naturally benefit! Consider BTC's recovery from its lows during Trump's frenzied pressure on the Federal Reserve to cut rates in 2019.
Case: Do you remember the collapse of the pound and UK bonds triggered by UK's Truss's 'mini-budget' in 2022? The trust crisis in the traditional financial system often reinforces the narrative of crypto assets as a 'store of value.' The 'politicization' of the Federal Reserve may trigger deeper concerns about the dollar system globally.
‘Powell's chair is already starting to shake, and Trump's guillotine is already raised. You think this bloody battle for power in Washington is just a political soap opera? Wrong! This is the biggest 'clear catalyst' for the crypto market in the second half of 2024! When the Federal Reserve becomes a political pawn, the tide of interest rate cuts may become unstoppable. The oracle asks you: Are you ready to welcome a 'political interest rate cut bull' that could be more violent than the 'halving market'? BTC at $100,000, is this Trump’s assist? Comment section, let loose! #美联储内战 #降息倒计时 #加密黄金坑