Friday, September 26, 2025

What do you think about these two scenarios?

1.The US needs to address its debt scenario. Reduce its cost of borrowing by reducing the Fed rate. Taking note that the US economy is intertwined with the global economy, it would be wise that the Fed eases into this to avoid a colossal shock in the market. So, you may ask, how does crypto come to play in this? Decentralized finance. Once the major corporations take a sizable amount of the crypto space, the Fed will strategically drop rates down to 1%. This will discourage carry trades. The result will initiate a selloff in the US bond market especially from foreign investors. The goal here is to shift custody of its bonds from foreign investors to local corporations who will be ready to leverage their crypto holdings and manage to absorb the sell shock that will be caused by the decline in rates. The result of this will see bitcoin soaring to even greater levels holding its deflationary aspect and in turn replace gold. This will only work if it manages to transfer more than quarter its debt. With about 94.8% of total bitcoin already minted, there has never been a more opportune time to execute this.

  1. Corporations dump their already existing crypto holdings when the bond selloff is initiated so as to absorb the bonds locally. This scenario is highly unlikely because it will mimic a rug pull meme coin event, however, not impossible. If this scenario happens, possible support levels are likely to be around $86,000 and $68,000.

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