20th December 2024 > > The Failing Fed, Ohio, & MSTR.

tl;dr

Jerome Powell, Chair of the Failing Fed, tries to take up unemployed Gary Gensler’s mantle, but he will not succeed in any respect other than following Gensler to the benefits office. Ohio joins the US states already fighting for freedom and liberty. A short MSTR revisit.

Market Snap

Market Wrap

The spot BTC ETFs saw a large net outflow yesterday in response to Powell’s deliberate manipulation of all risk markets downwards. If that continues then the price of BTC will suffer. We shall soon learn whether this is a minor aberration in response to a 2025 forecast of two interest rate cuts in 2025, and not three, by Powell (who has never made an accurate forecast in his life about anything financial), or whether institutions will continue to keep buying. You probably know what I think about that conundrum.

Curious Cryptos’ meme corner (h/t Milk Road)

Curious Cryptos’ Commentary – Jerome Powell is the new Gary Gensler

Jerome Powell, Chair of the Failing Fed, has dismissed the concept of a US Bitcoin reserve because he claims that the Fed is not authorised to do so (uh, yes, it is), and he personally has no interest in pursuing such a move. The latter part of his argument speaks volumes. We already know that democracy does not feature as an issue that is of any relevance or import in the technocratic elites’ lives here in the UK, the US, or in the EU, so we should not be surprised at this dino approach of his.

But I have news for you, Powell.

Dude, you are on your way out, and not before time.

Curious Cryptos’ Commentary – Never mind, Ohio is in on the action

With a veritable two fingers in Powell’s direction, the legislature of Ohio is considering House Bill 703, the Ohio Bitcoin Reserve Act, introduced by Representative Derek Merrin:

Derek tells it like it is:

“Bitcoin is revolutionizing finance and will reshape world economies. We must have sound money – it’s like digital property rights for everyone who owns it. This legislation sets up the framework for Ohio’s state government to harness the power of Bitcoin to strengthen our state finances.”

So, that’s Ohio, Wisconsin, Michigan, Texas, and Pennsylvania already on the march, with many others soon to join, according to my sources in all levels of government.

What say you now, Powell?

Curious Cryptos’ Commentary – MicroStrategy (MSTR)

I get so many questions and queries about MSTR, and I do appreciate them all. Some of them are genuinely inquisitive, some are genuinely insightful, and some are unfortunately motivated by a wish that BTC (and by extension, MSTR) will not be successful.

For those who are genuinely interested, and are not simply trying to score points, these are some of the key issues to keep in mind when thinking about MSTR.

- It trades at a premium to the price of BTC, which means that by buying MSTR you are paying more for your share of its BTC Treasury than buying BTC outright.

- Forget about its original computer business – that’s a distracting sideshow now.

- BTC volatility is already off the charts. MSTR is even more volatile, and that makes it very unsuitable for a lot of investors.

- Plenty of TradFi firms will keep on telling you it is overvalued, and that is true according to the standard methods of valuing stocks, which may not be up to the crypto challenge.

- Michael Saylor’s new concept of Bitcoin Yield is an interesting one. It is not to the liking of TradFi firms, and to be fair it is yet to stand the test of time.

- MSTR’s BTC acquisition strategy is being copied by a number of other firms. First mover advantage can reap dividends.

- You cannot shelter crypto gains from the taxman (or at least not yet). You can with MSTR.

I leave the floor to Pasquale Bellini, a long-term supporter of the CCC:

“Saylor’s MSTR flywheel play will go down as the greatest financial checkmate move in history, and we are fortunate enough to have a ring side seat to watch it play out in real time.”