How Scenes Of Political Crisis Place Pressure on Cryptocurrency Signaling Bears

Governments are at it again, with Russia the latest to spook markets with rumors of outright cryptocurrency bans.

More precisely, the Bank of Russia has taken action against the industry as it chafes at its impending irrelevance as Bitcoin and related technologies shine a light on central banks’ massive overreach around the world. The lie here is not that Bitcoin will erode central banks’ monetary sovereignty. This outcome is all but certain as investors come to appreciate the astounding benefits of a Bitcoin-based financial system. Rather than that, the myth is that central banks’ near-omnipotence over monetary systems is a positive thing.

The reality is that the Bank of Russia, like many other central banks worldwide, fears losing its capacity to manipulate and control financial markets while amassing substantial riches for its members and benefactors. Meanwhile, the Bitcoin financial system continues to be a stronghold of inclusivity and self-sovereignty, as everyone can engage on an equal basis with anyone else at any moment. Those who dismiss the Bitcoin blockchain and the Proof of Work consensus mechanism that enables it as “unproductive” are either oblivious or malicious.

Similarly, the notion that Bitcoin mining endangers residential and commercial power sources is a farce. Because their energy usage is largely consistent in terms of supply and demand, energy prices in locations with dense populations and enterprises (i.e., cities and towns) are among the highest in the country. The cost of electricity is the primary profit differentiator for Bitcoin mining, which means that Bitcoin miners are strongly disincentivised to operate in places where direct competition from residential and commercial energy customers results in outrageous energy prices.

The fact is that Bitcoin mining is catalyzing unprecedented development and investment in energy infrastructure globally, Veterans of the space can recall dozens of such prohibitions over the years that have largely failed to prevent the growth of blockchain technologies.

However, new participants are more likely to be unfamiliar with how to navigate what may be uncharted territory for them. As a result, we can disprove many of the lies and half-truths spread by the Bank of Russia’s conspiracy theorists in recent days

Central banks and the government bureaucrats who oversee them are vested in demonizing Bitcoin and swaying public opinion against it. After all, their centuries-long stronghold on financial markets has generated enormous wealth for them at the expense of everyone else.

Regardless of its mismatched incentives and attacks, the Bitcoin blockchain continues to run block after block, providing financial inclusion and sovereignty to anybody who uses it.

Bitcoin is now treading water in terms of price performance against the good old dollar, but it is performing admirably when compared to Amazon’s shares. We’re on a different street compared to 4 years ago , and decrypt reports that the Biden administration will soon issue an executive order on cryptocurrencies. To begin, a senile Muppet for the elites in that country is also poossibly trying to manipulate the market to favors all his cronies , so that they can bang big on the stock exchange to dig what they believe will help them for their fuind raising before the coming midterm election ;

The hidden senile muppet for the elites are well in control of a country but not the cryptocurrency market that belong to the poeople of the decerntralized World . The elites, on the other hand, appear to be willing to allow crypto in the US, but only if it is “bottled and regulated.”

The executive order is supposed to establish regulatory procedures for the crypto space, but these orders will have the authority to regulate… “whatever they can.” What is there to control, for instance, about Hive? They are not permitted to touch it, so they have been suggesting a digital currency of their own !

They can, however, affect exchanges and investing firms that have an interest in delivering crypto services, payment apps, and likely mining facilities as well. All of this is because it appears as though the US is working on building its own CBDC.

The Fed ‘s authority has just address Fed meeting on inflation ,this morning

Everybody’s attention is focused on the FOMC meeting, during which the Fed will debate tactics for combating inflation.

However, you must be perplexed by the variety of hypotheses advanced by analysts regarding the Fed’s possible actions.

It’s tough to determine which analyst is telling the truth and which is manipulating investor emotions.

In this essay, I will analyze analyst reports and leave it up to you to determine how to proceed in the cryptocurrency market.

Inflation and the Federal Reserve

While hyperinflation is a myth, inflation is already at 7 % — and is unavoidable ,This gave the Fed full authority to enters the picture and they claim to find solution of major four major functions.

The first and most important is: Conducting monetary policy for the country by influencing money and credit conditions in the economy in order to achieve full employment and stable prices. Stable coin — ‘Stable prices’? what they possibily meant is Stable prices refer to a price level that is neither too high nor too low to be classified as inflation or deflation and thats why FOMC meets eight times a year with a consistent agenda that includes price stability.

When COVID-19 was proclaimed a global pandemic in March 2020, the entire world was placed on lockdown.

As the active population was unable to participate in economic activity, the economy began to contract. As a result, several countries were forced to increase money printing despite dire warnings from experts.

The issue is that when a country’s money supply grows faster than economic growth, the result is’sustained inflation,’ which paints the financial markets red as of today

We saw the worrying aftereffect of it earlier this month when Bitcoin fell to $36 k due to investor concern . Daily trading volume in the cryptocurrency markets has fallen to record lows as all eyes are on the Federal Reserve’s next move, but luckily the Whales came in and push back up the crypto market by 12%

Analysts’ Take on the FOMC Meeting

The cryptocurrency market will gain clarity following the Fed’s upcoming FOMC meeting.

The meeting is slated to begin at 2:00 p.m. ET on Wednesday, January 26, and will conclude at 2:30 p.m. ET with Powell’s press conference.

However, analysts are swarming the internet with their own forecasts:

Allow me to begin by analyzing the analysts’ analyses.

1) The Federal Reserve Will Implement Quantitative Tightening

This is the most harmful tool available to the Fed for inflation management.

If we were experiencing hyperinflation, it would make logical to take the most drastic measures possible.

Although the current inflation rate of 7% is the highest since 1982, it is still manageable using a softer approach.

If the Fed decides to implement tightening procedure and immediately begins selling government bonds and long-term securities in the open market, investors would begin to withdraw from financial markets, beginning with cryptos, which are still regarded the riskiest assets. ( This is not very much welcome by all the cryotopreneurs ) As the stock market is a barometer of a country’s economic strength, a bearish stock market will erode investor confidence and destabilize the economy.

2. The Federal Reserve will raise interest rates four times this year!

From financial analyst , the prediction calls for four rate increases in March, June, September, and December. However, we believe there is a risk that the FOMC would seek to tighten policy at each meeting until the inflation outlook improves. This type of news contributed to the fabrication of FUD and precipitated a big sell-off in the financial markets.

If the Fed decides to raise interest rates four times this year, this will result in a large reduction of liquidity, and deflationary pressures will resurface sooner than predicted

3. The Federal Reserve will end Quantitative Easing!

This is the only logical prediction that will come true!

The only way to successfully combat inflation is with a gradual decline in QE.

This is why the Fed began the process in November 2021. It began monthly reductions of $15 billion in its current bond-buying program. This implies the Fed will now spend a few billion less per month on government bond purchases, rather than $120 million. A Reduced QE is a win-win policy since it allows the Fed to not only pull inflation down to a healthy level, but also to keep the financial markets green and healthy.

All points mentioned seems are quite appropriate solutions put up during these difficult times , but as mentioned before our hidden senile muppet for the elites are well in control of a country but not the cryptocurrency market that belong to the people of the decerntralized World . The elites or majority of politicians’ wealth is invested in the stock market;the truth behind could be more if we can raise the curtain higher ;

Insider trading has historically been a shadowy aspect of the stock market.

Fifty four members of Congress were reported to have violated a law intended to prevent insider trading in recent breaking news.Recent hot news by various media about various american politician who has among all ,the biggest portfolio among their members or even in the U.S ,has been involved in insider trading as it shows it has always existed and will continue to exist.

All of the big money, whether it’s retirement funds, 401Ks, or whatever you want to call it, is invested in the stock market.

If you examine history, political strategy has always been centered on preventing the stock market from collapsing.

And the Fed is now under great pressure to avoid destabilizing the stock market.

The Fed’s $9 trillion balance sheet must be unwinded.

Since the COVID crisis, and possibly even before, the Fed has been buying corporate bonds.

If the Fed decides to raise interest rate hikes four times this year, it will devastate the financial markets and consequently destroy the value of the underlying assets on the balance sheet

How will the Fed unwind its $9 trillion balance sheet if it takes a hardline stance against inflation? Thats Why Pelose has been suggested in various media reporting that she will not be around for the next terms ,I guess She knows the congress will not agree to on those sensitive moves on Crypto and her party might have hard times ahead , to keep raising funds so its time to pass over to the next best person for her party

Balance of trade

China is compelled to implement Quantitative Easing as a result of the Evergrande disaster. Additionally, the European central bank will inject additional liquidity into the economy.

If the US decides to raise rates at a time when the rest of the world is lowering rates, the trade balance will deteriorate.

Will the United States follow China’s lead in containing inflation?

At the moment, America’s trade balance with Europe is approximately $160 billion in surplus, while Europe’s trade balance with China is approximately $170 billion in deficit.

Europe is undeniably dependent on the United States.

All the USA wants at the moment is a weaker currency but with rates hike,The Dollar is bound to go higher

Thus, Europe’s profit margins will be stretched while selling to the United States and for their standoff with the Russia, they will be more obliging to the Unietd States ,as they need both the UK and United States military support.

Regrettably, Russia is laughing to the bank for Now , I suspect their show of militry might at the Border with the coincidental Crypto Market Crash , is very much a Show to create higher tension, as Russia’s affiliate whale will just come in and wallopp billions from the market .

All seems timed to the schedule of the FOMO meeting so that they can make a realistic move in the cryptocurrency market , and yet we all and has to swallow the loss without pride ,to the materminding and tactical manoeuvre of a group of genius with true might to empower a system that is able to influence a global political scene of possible high political tension, with i beleive has the backing for more than one country to make this realistic scenario and pressure on the US government, Why So ? When Russia called for ban on crypto and send their missile units to the border , Crypto market crashed .Meantime in the pacific region, 37 fighter jets enroute to Taiwan took off from China , and its show they were there to increase utmost pressue in order to elevate higher tensions and uncertainties until the leader from Russia , “Get What He wants ”

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