This week, the U.S. Federal Reserve made its move: it cut interest rates. While this may sound like the biggest news of the week to most, analyst Michaël van de Poppe argues it’s merely a smokescreen. As headlines focus on the percentages, a much larger shift is happening behind the scenes with direct consequences for your wallet and investments. In his latest video, he dives into the fine print of the Fed meeting to reveal what’s really going on.
Watch the full analysis here: https://www.youtube.com/watch?v=lzODw3d-iYw
The Unofficial Money Printer Is Running Again #
The real story isn’t the rate cut itself, but what the Fed quietly announced about its balance sheet. The central bank is starting to buy a whopping $40 billion per month in government bonds. In financial terms, this is known as Quantitative Easing (QE), but in simple terms, it means one thing: the money tap is back on.
Van de Poppe explains that the U.S. job market is much weaker than it’s being portrayed. To prevent the system from seizing up, the central bank is now injecting massive amounts of liquidity (money) into the markets. This strongly resembles the situation in 2019 and the period after the COVID crisis. The lesson from the past is clear: when the central bank pumps this much money into the system, the prices of scarce assets rise.
Gold Is Pointing the Way for Bitcoin #
Tangible proof of this currency devaluation is the price of gold. Gold is breaking record after record, not because we as consumers are buying jewelry en masse, but because superpowers like China are rapidly adding to their reserves. Gold reacts directly to the increase in the money supply.
So why did the price of Bitcoin fall right after the rate cut news? According to the analyst, this is a classic case of short-term volatility, where speculators are shaken out of the market. Van de Poppe emphasizes that Bitcoin and gold will ultimately travel the same path. The current dip could be a prime opportunity, as the underlying trend, driven by the Fed’s policy, is inevitably pointing up.
Opportunities in an Approaching Crypto Market Crisis #
It sounds contradictory: the analyst states that we are effectively already in a crisis, yet he predicts rising stock prices. How does that work? As long as the money printer is running, the prices of assets (like stocks and crypto) remain artificially high, even if the economy stutters. We seem to be heading for a scenario similar to the 1990s or the 1920s, where a massive peak preceded the eventual crash.
Curious about the exact price levels to watch for Bitcoin and Ethereum, and want to see the charts that prove we are on the eve of a major move? Watch the full video for the in-depth analysis and all the charts.