Putin-Biden Summit: The 'Crypto Gamble' of Geopolitics
No agreement was reached at the Putin-Biden summit, but Putin's remark 'See you in Moscow' ignited imagination: if the US and Russia use cryptocurrencies to bypass SWIFT for energy settlements (for example, Russia selling oil for Bitcoin), Bitcoin could instantly break $100,000! But geopolitics is a double-edged sword — in the early stages of the Russia-Ukraine conflict in 2022, Bitcoin surged due to safe-haven demand, only to be beaten back by the Federal Reserve's interest rate hikes.Federal Reserve Interest Rate Cut: The 50 Basis Point 'Sweet Trap'
Conflicting US Inflation Data (CPI down but Core CPI resilient), officials are eager to cool it down by 50 basis points. But history shows:After the Federal Reserve's first interest rate cut, Bitcoin averaged a 38% increase over 3 months.(Data from 2019 and 2020). Now, the attractiveness of traditional assets (US Treasuries, stocks) is diminishing, and hot money will inevitably flow into the crypto market. But be wary of 'buying the expectation and selling the fact' — if only 25 basis points are cut in September, Bitcoin may plunge in the short term.US Treasuries at $37 trillion + Buffett's sell-off: A 'precursor to a market crash' in traditional markets.
US national debt surpasses $37 trillion, equivalent to $110,000 debt per American! Buffett has reduced his stake in Apple for 7 consecutive quarters, decreasing his holding from 48% to 26%. The big players are voting with their feet:Risks are accumulating in traditional markets, and funds need new outlets.Meanwhile, Bitcoin is becoming 'digital gold' — data shows that for every 1% rise in US Treasury yields, Bitcoin averages a 4.2% increase (data from 2023).
The current crypto sphere is like gamblers standing at the mouth of a volcano — the Federal Reserve's interest rate cut is the 'money printer', the US Treasury crisis is the 'fuse', and geopolitical issues are the 'catalyst'. But don't be fooled by short-term fluctuations; in the long run, Bitcoin's 'digital gold' attribute has been recognized by institutions. BlackRock and Fidelity are quietly increasing their positions; they are not here for short-term plays.
Will the Federal Reserve cut rates by 25 or 50 basis points in September? Can Bitcoin break the $100,000 mark? Will the Treasury crisis become the last straw that breaks traditional finance? Leave your predictions in the comments; the top three fans with the most likes will receive a copy of the (Crypto Wealth Manual)! Remember: in the crypto market, you can never be a 'bystander'; you either get on board or get harvested!
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