Many people have a misconception that as long as the Fed listens to Trump and starts to cut interest rates wildly, Crypto Assets will enter a bull run. In fact, this view is incorrect.


The reason the US dollar can maintain its status as the global reserve currency is not solely due to the size of the US economy, but because it has institutional credibility, and people believe it won't be easily manipulated by politics. Once the independence of the Fed is lost, the first to suffer will not be others, but the US stock market itself, and the credibility of the dollar will also be directly discounted.
Stablecoins in the crypto circle, such as USDT and USDC, are fundamentally derivatives of the credit of the US dollar. People are willing to hold them because they believe the US dollar is genuinely redeemable. If the independence of the US dollar is compromised, the foundation of these stablecoins will also be shaken.
Some believe that after Trump intervened with the Fed, the liquidity will be more aggressive, and the US stock market and Crypto Assets can surge wildly. This may be true in the short term, but in the long run, it leads to credit overextension, the US debt cannot hold up, and the international status of the dollar is shaken. In the end, what arises from dollar assets will only be a house of cards. Those who rely on this kind of logic to fantasize about getting rich often end up losing everything.
If Trump really reaches into the Fed, causing it to lose its independence and become Trump's puppet organization, that would be a completely different nature, as it would undermine the foundation of the entire American financial system.
TRUMP1.15%
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I_mComing!!!vip
· 08-27 12:26
So, can it be pried open?
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