This week, the U.S. Federal Reserve made its move: it cut interest rates. For most people, this might sound like the biggest news of the week, but according to analyst Michaël van de Poppe, it’s merely a smokescreen.
While the headlines focus on the percentages, a much larger shift is happening in the background with direct consequences for your wallet and investments. In his latest video, he dives into the fine print of the Fed meeting and reveals what’s really going on.
The Unofficial Money Printer Is Running Again #
The real story isn’t in the rate cut itself, but in what the Fed quietly announced about its balance sheet. The central bank is starting to buy a whopping $40 billion in government bonds every month.
In financial terms, this is often called Quantitative Easing (QE), but in simple terms, it means one thing: the money tap is open again.
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 Paving 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 replenishing their reserves. Gold reacts directly to the increase in the money supply.
So why did the price of Bitcoin fall right after the news of the rate cut? 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 upwards.
Opportunities Amid an Approaching Crisis in the Crypto Market #
It sounds contradictory: the analyst states that we are effectively already in a crisis, yet he predicts rising stock market 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 stumbles.
We seem to be heading for a scenario similar to the 1990s or the 1920s, where an enormous 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.