Powell’s Crypto Shenanigans: Fed’s Secret Liquidity Play 🤑

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Let me get this straight-Jerome Powell, the guy who probably still uses a flip phone, just dropped a crypto bombshell while pretending he didn’t? Quinn Thompson of Lekker Capital claims Powell’s post-FOMC rant was less “macro uncertainty” and more “Hey Congress, open the damn government or I’ll tank your December rate cut.” And guess what? Crypto liquidity got whiplash. 😂

Thompson spilled the tea: “Powell was basically doing interpretive dance for the admin-like, ‘If you don’t fix the shutdown, I’m not cutting rates. And yes, I did just comment on market pricing. Surprise!’” Classic Powell. Normally, he’d be like, “I don’t do market forecasts,” but this time? He broke character. Why? Because the Fed’s been running on fumes since October 1st-no labor data, no inflation numbers, just vibes. 🤷♂️

The Fed cut rates by 25 bps, then Powell said, “December cut? Not a foregone conclusion-far from it!” Markets went bonkers. Treasury yields spiked, crypto dipped, and everyone was like, “Is this hawkish? Is this a trap?” But Thompson’s take? It’s not about tightening-it’s a veiled threat to Congress. “Open the government, or I’ll blame you for my policy decisions. Win-win.” 🤝

And here’s the kicker: Powell’s team is already prepping to end quantitative tightening (QT) in December. That means they’ll stop shrinking their balance sheet and start buying bills. Translation: More dollar liquidity, which historically = crypto gains. But let’s not call it QE-too on-brand for the Fed. 🚀

Thompson’s final act? A mic drop about Powell’s impending term expiry. “New Fed chair, same crypto-friendly agenda. Markets? They’re safe. Liquidity? It’s coming. And Trump’s tariffs? They’ll probably help.” Meanwhile, the total crypto market cap? $3.73 trillion. Coincidence? I think not. 💸

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2025-10-30 12:38