Fed cut in Sept -crypto pump or hopium? And are we getting more money printing?

[HardFireMiner]

Yo,
Heard the whispers about a possible Fed rate cut in September. Will the ToolatePowell really cut the rate? Is this actually happening, or is the market just jonesing for a dopamine hit?

If it does drop:

Crypto: Bullish short-term (obviously), but what’s the catch? Last time cuts came with "soft landing" FUD. Is Bitcoin just a risk-on asset now, or can it dodge the recession bullet?
Everyone’s screaming "MORE LIQUIDITY = MOON," but hold up-rate cuts is not equal printing presses rolling 24/7. Is this just the start of stealth QE? Or will they actually start monetizing debt again? (Looking at you, U.S. deficit.)
I’m not buying the "this time is different" narrative. If they cut because the economy’s cracking, crypto might get dumped with stocks. If it’s "confidence" cuts… well, we all know how that ended in 2021.

This feels like the calm before either a pump or a dump. But if the Fed flips to full money-printer mode to cover the debt ceiling circus… yeah, we’re in for chaos.

What’s your opinion? Am I paranoid, or is this the setup for "QE infinity"? Or am I missing something obvious?

Not financial advice. Just a degen losing sleep over Fed memos.

[BitGoba]

FED and the dollar are a big Ponzi scheme. For the system to function, new dollars constantly need to be printed. They have to lower interest rates for the Ponzi scheme to continue, because if they don’t create and pump in new dollars, the scheme will implode. But there is already too much dollar  in circulation, so hyperinflation can very easily occur if they lower interest rates. Hyperinflation could happen very quickly, and the dollar could lose value overnight. They are walking on a tightrope, and below them is an abyss.

The smartest thing you can do is get rid of all fiat currencies  dollars, euros  and convert them into hard money like Bitcoin or gold, because otherwise you risk losing everything if you hold dollars.

[HardFireMiner]

FED and the dollar are a big Ponzi scheme... get rid of all fiat... convert them into hard money like Bitcoin or gold...

You’re half-right, but the "overnight hyperinflation" take is paper hands panic.

You nailed here:

• Ponzi? Absolutely. The Fed’s been kicking the can since 2008. Debt > $34T? Interest payments eating 20% of tax revenue? This isn’t economics it’s emergency triage.
• Tightrope walk? 100%. They’re choosing between recession (keep rates high leads to debt implodes) or stealth inflation (cut rates leads to print quietly to fund the deficit). No "soft landing" here is just picking your poison.

Where you’re WILDLY off:

Hyperinflation could happen overnight... lose everything holding dollars.

Nah. The U.S. isn’t Zimbabwe. Hyperinflation needs:

• 0% faith in the currency (dollar’s still 65% of global reserves),
• Zero productive economy (U.S. still prints iPhones, chips, and soybeans, and dollars of course),
• Total political collapse (which ain’t happening by next Tuesday).

Reality? We get "meh-flation": 5-8% for years while the Fed slowly monetizes debt. Painful, but not "burn your cash" territory.

Convert to Bitcoin or gold

Gold? Sure if you want 0 yield and a 30% crash when rates actually drop (see: 2020 example, now trading at ATH).

You’re right about the Ponzi. But screaming "DUMP FIAT NOW" is like yelling "FIRE!" in a crowded theater, most people get trampled before they reach the exit. Stay paranoid, but keep your powder dry.

[Jet Cash]

Britain is bankrupt, but it holds many billions of dollars worth of bonds. If they do cut the rate, then Britain should sell those fast. The long term rates are going up, so an interest rate cut is not sustainable, and will lead to a weakening of the dollar imho.

[Oshosondy]

FED and the dollar are a big Ponzi scheme. For the system to function, new dollars constantly need to be printed.

Ponzi scheme is not known until the business cannot long sustain it. I do not see FED and dollar as ponzi scheme as it is known to everyone how dollar is not a good way to hold money. Dollar is even better, there are some countries with hyperinflation that their currency is falling more than how dollar is falling.

Britain is bankrupt, but it holds many billions of dollars worth of bonds. If they do cut the rate, then Britain should sell those fast. The long term rates are going up, so an interest rate cut is not sustainable, and will lead to a weakening of the dollar imho.

The dollar can get weak, but also it can lead to temporary increase in bitcoin price. Bitcoin traders are really waiting for this.

[buwaytress]

We are getting more money printing regardless of the decision. What's more, POTUS himself, after all the good moves he had with memeshits, has gathered his brood to himself and printed more 'crypto' money too. Can't beat them, join them, I guess. Good for Bitcoin in the end, just not sure if it'll all come without much more pain than we imagine.

[ThemePen]

You are right to be skeptical as situation is far from simple. Potential Fed rate cut in September is not same as money printer being turned on. We know that Rate cut is regular tool used to make borrowing cheaper and encourage spending while Quantitative Easing is much more aggressive step where Fed directly buys government bonds and other assets. And rate cut might be signal that Fed is ready to do more but its impact on crypto is classic double edged sword lower interest rates could make risky assets like crypto more attractive causing short term price increase. And if rate cut is sign that economy is struggling and recession is on way investors could sell off all risky assets including crypto and move to safer options. This is a very different situation from one in 2021 and future of crypto will depend on these rate cuts are seen as sign of economic weakness or calculated move to prevent downturn.

[HardFireMiner]

Rate cut ≠ QE... double-edged sword... not like 2021...

You are totally right with this one - rate cut is not QE? 100%. Textbook says cuts = "normal tool, " QE = "nuclear option." But the market doesn’t read textbooks. When ToolatePowell whispers "cut," degens scream "LIQUIDITY PUMP = MOON!" and dump bags into BTC. Perception > policy.
Double-edged sword? Exactly. If Sept cut = "recession incoming," crypto dumps with stocks. If it = "soft landing," we get a hopium pump........ until the next CPI print.

Future of crypto depends on how rate cuts are seen...

If they cut then pause (like 2019), crypto chills. If they cut then monetize debt (stealth QE via bond reinvestment), BTC moonshots... but only if it’s framed as "dollar weakness," not "recession panic."
The narrative shifts daily. One hot take: "Cut = growth!"  next day: "Cut = we’re fucked!" Crypto’s a mirror for Wall Street’s mood swings.

My take on this - short-term: Buy the rumor (Sept cut hype), sell the news (post-FOMC dump). Long-term: If the Fed admits they’re monetizing debt ("we’ll hold bonds until 2025"), BTC becomes the only "safe" asset... if it survives the panic selloffs when the S&P cracks.
You’re right,it’s not simple. But in crypto, "calculated move to prevent downturn" = "we’re printing until it breaks."