Quote from: snowpega on September 10, 2025, 06:07:28 AM

Quote from: pooya87 on September 09, 2025, 02:13:15 PM

Such a thing has absolutely no effects on the cryptocurrency market in the short term considering it is too local (US related and not global) and it is going to mainly affect the US markets (assuming they cut rates now or any time in the future).

In the long run as cutting rates at this point would lead to higher inflation, that can help the bitcoin price go up. And if that leads to a bull run that lasts longer than a couple of weeks then we can expect the altcoin market to see some rises as well as "newbie money" comes into it.

I agree with you here, mate. But the US main goal is to attract handsome money into their country, and they are acting like a greedy entity, as I feel. The Trump administration just wants these rate cuts to be lower so that whatever money they have invested will be converted into a handsome amount of profit. You know how much the trump administration is involved in the crypto space, that is why I feel that the trump administration just wants the rate cuts to be lower in the coming Fed announcement. This will give some relaxation to the investors, and then they will start to enter the market heavily.

And, this is also the reason why the Trump administration is giving higher rate cuts priority over inflation, just like you said. If this happens, then the chances are higher of an increase in the inflation rate. CMIIW! What do you say? Any opinion or suggestion on this? Your opinion is highly welcome on this for me.

You are right but this is a very complex matter. To put simply I'd say they want to have their cake and eat it too! You see, lowering interest rates would help the US economy start getting out of recession, it will help attract investors in the production sector and create jobs. Which are all positive speculations. But the US economy has turned into a debt based economy. Even the government functions like that. But when the government creates debt, it needs to be able to "sell" that debt to other countries and have them bag-hold that debt (the bonds the US gov. sells).

Now the problem is that with the World Order being established in the multi-polar world, other nations are not as willing as before to buy the US debt. For example China has already dumped IIRC $400 billion of those bonds.
The interest rates is what encourages them to continue bag-holding the bonds and maybe buy more (like Japan buying more). If they cut rates, not only the dump may speed up but also they will have a harder time convincing other countries to buy more of the US debt. That means more domestic inflation. That will discourage investors again!

P.S. Trump's involvement in crypto space is not an investment type of involvement, it is more like a scammer tactic. They created useless shittokens (which requires virtually zero investment) and sold it to gullible people and made millions.