This past week was kind of a bummer for crypto and the markets. A lot of things happened, but honestly, none of them really moved the needle. Stuff like the NFP (Non-Farm Payrolls) report, Trump’s actions, the White House Summit, and even Fed Chair Powell’s comments—none of it had a big impact. Bitcoin had a rough weekend, and it felt like everyone was just waiting around for something to happen.
Here’s the deal: The NFP numbers were kind of “meh.” They went up a tiny bit, but not enough to make the Fed change their plans. The Fed is waiting for the CPI data next week to decide what to do next. Oh, and there’s this whole thing where Trump might be manipulating the NFP numbers through tariffs and other policies, which is causing some unemployment issues. But the Fed is still holding strong, trying to keep things under control.
Now, there’s this thing called the RRP (Reverse Repo Program). People thought it might drop to zero, but nope—it actually went up. Even the experts can’t predict it right, so don’t feel bad if you’re confused. Some folks think the Fed might use the RRP as a bargaining chip with Trump, like, “Hey, we’ll keep liquidity flowing, but don’t ask us to cut interest rates.” It’s all a big game of chess.
Over the weekend, things were super quiet. Bitcoin dropped, and some expected liquidity to flow into altcoins, but that didn’t really happen. The charts are looking rough, and it feels like there’s just no money moving around. People are frustrated because, at the end of the day, they don’t care about politics—they just want to have money in their pockets. If their wallets are empty, they’re going to complain. And right now, it feels like everyone’s waiting for more money to be printed and distributed.
The bottom line? Liquidity is super tight. People are struggling with unemployment, hunger, and even crime. Bitcoin is still hanging around $88K, just waiting for something to happen. It’s like everyone’s in this holding pattern, waiting for the next big move. Liquidity can’t stay this dry forever—unless we’re headed for something really bad, like a world war or a depression.
On the geopolitical side, things are messy too. Trump is trying to negotiate with Russia to mediate with Iran, but it’s not going smoothly. Russia wants sanctions lifted, and if that doesn’t happen, Ukraine might get hit even harder. Meanwhile, China is holding back on its stimulus plans, and the PBOC (People’s Bank of China) is actually withdrawing liquidity. Trump sent a letter directly to Iran, which shows that Russia isn’t playing nice with Iran anymore. And China is raising tariffs, basically saying, “If the U.S. wants a trade war, bring it on.” It’s a tense situation.
Oh, and here’s a wild thought: Some analysts think the U.S. government is intentionally cutting spending to trigger a recession. Why? Because then they can declare an “emergency” and push through a massive spending package to “save the economy.” It’s like a sneaky way to justify printing more money. Elon Musk is trying to streamline the government, but at the end of the day, Congress holds the cards. And they’re sticking to the status quo.
Meanwhile, the Fed is sitting on nearly a quarter-trillion dollars in losses because they’ve been holding interest rates high. It’s crazy to think a central bank can lose that much money, but here we are. Here’s something huge: U.S. banks can now officially hold crypto, be validators on public networks, and custody stablecoins. This is a trillion-dollar announcement, but because liquidity is dry, the market isn’t reacting—yet.
Another story Canada just dropped a 100% tariff on Chinese electric vehicles, following the U.S. lead. China responded immediately with its own 100% tariff on Canadian agricultural products and a 25% tariff on steel, aluminum, and seafood.
China, on the other hand, is smart. Instead of fighting back directly, they’ll redirect trade through Mexico and strengthen their reserves in yuan instead of U.S. dollars. That’s why the U.S. dollar (DXY) is losing liquidity, while China’s yuan is getting stronger.
This is just more proof that a big stimulus wave is coming—the more tariffs fly around, the closer we get to governments injecting fresh money into the system. Canada is basically following the U.S. orders, and Trump will likely cancel their tariffs once he gets what he wants.
So yeah, it’s a weird time. Everyone’s kind of guessing what’s next. But one thing’s for sure: Liquidity is the key. When that comes back, things will start moving again. Until then, we’re all just waiting and watching.
Leave a Reply
You must be logged in to post a comment.