The Trump administration is pumping Bitcoin by printing money

[takuma sato]

The irony of what was supposed to be the most friendly Bitcoin administration by buying Bitcoin and establishing a so called "Bitcoin Strategic Reserve" never happened, and instead this administration, no different from any other administration, is being forced to buy back their own debt in order to keep yields from going above 5%. This printing of the money to buy back their own debt is sending the clear signal that money printer is back on. Bitcoin was the first asset to react and is not above the 200 day moving average, proving that yield curve control will pump BTC to all time highs once the US government is checkmated into doing so.

This proves that the bullish thesis for Bitcoin remains and any noise around it is just used by smarter players to accumulate a lower prices, no matter what the FUD is (hard forks, crypto regulations being against it, and so on). Facts remain: BTC remains the only asset you can truly own that is strictly limited in amount and when measured in USD it will go up on a long enough timeframe.

[SilverCryptoBullet]

This proves that the bullish thesis for Bitcoin remains and any noise around it is just used by smarter players to accumulate a lower prices, no matter what the FUD is (hard forks, crypto regulations being against it, and so on). Facts remain: BTC remains the only asset you can truly own that is strictly limited in amount and when measured in USD it will go up on a long enough timeframe.

There are more things that contribute to make Bitcoin very secure, strong and valuable. The total supply cap at 21 millions is not the only contributor for Bitcoin value because you can see in the market that there are altcoins, tokens with 21 millions coins or tokens in supply, some have smaller than 21 millions supply totally but they don't have similar value or higher value than bitcoin has.

Example is this YFI token with only 36.64k tokens in its total supply. Years ago, two cycles ago, this token made its all time high with price (above $92k) higher than Bitcoin price at that time, now it is far below Bitcoin price.
https://coinmarketcap.com/currencies/yearn-finance/

[Smartprofit]

By the way, today I listened to an interview with Elon Musk on YouTube. In it, he talked about the catastrophic state of the US national debt. Defense spending is a huge burden on the national budget. 🙋

After the active phase of the war with Iran, the US government needs to restore its lost military potential (in particular, by producing new missiles). Congressional elections are also approaching. Historically, this process is accompanied by increased budget spending.

Therefore, I wasn't at all surprised by the news that the US administration has begun printing money to buy back the national debt. It was inevitable... Yes, the US dollar will depreciate in the coming years, and the price of Bitcoin will rise accordingly. In my opinion, Michael Saylor may be partially slowing this process. He owns a large amount of Bitcoin and is willing to gradually sell them to pay off his fiat debts to investors and shareholders.

Bitcoin is deflationary money, and deflationary money should appreciate against fiat currencies.  Certain actions by institutional investors can certainly slow this process down, but I don't think they will be able to stop it completely or reverse it. 💁

[Ambatman]

Indirectly it would help them in a way
Printing money or increasing their money supply could lead to more inflation
Which in turn would reduce the real value of current dollar
Compared to when it was borrowed.
And on the side note Bitcoin performs well as people scared of devaluation run towards assets like Bitcoin or Gold.


At the end of the day they can reduce the burden but to escape it.

[Mia Chloe]

~snip

I think this actually explains the pump we are experiencing now. Trump at first contributed a lot to the last pump and the dump like wise and I literally smell the same move about to pull off. If you look at your chart bitcoin literally buttoned and has remained bullish ever since hasn't even made a retracement.

And on the side note Bitcoin performs well as people scared of devaluation run towards assets like Bitcoin or Gold.
At the end of the day they can reduce the burden but to escape it.

Making their dollar worth less is it negative impact on them too it reduces their overall strength in both the stock market and the exchange market globally. To cancel that off I believe they are using strategic reserves since bitcoin is pumping.

[hmbdofficial]

By the way, today I listened to an interview with Elon Musk on YouTube. In it, he talked about the catastrophic state of the US national debt. Defense spending is a huge burden on the national budget. 🙋

After the active phase of the war with Iran, the US government needs to restore its lost military potential (in particular, by producing new missiles). Congressional elections are also approaching. Historically, this process is accompanied by increased budget spending.

Therefore, I wasn't at all surprised by the news that the US administration has begun printing money to buy back the national debt. It was inevitable... Yes, the US dollar will depreciate in the coming years, and the price of Bitcoin will rise accordingly. In my opinion, Michael Saylor may be partially slowing this process. He owns a large amount of Bitcoin and is willing to gradually sell them to pay off his fiat debts to investors and shareholders.

Bitcoin is deflationary money, and deflationary money should appreciate against fiat currencies.  Certain actions by institutional investors can certainly slow this process down, but I don't think they will be able to stop it completely or reverse it. 💁

I agree with the general point about bitcoin’s limited supply. But I still think there is need to separate facts from assumptions. I don’t the US government print money to buy back national debt, I suppose treasury debt management and federal reserve monetary policy are separate processes. Also bitcoins’s 21 million supply cap does not guarantee price appreciation, the price should simply be based on demand as it should be. Take The YFI for example it went to it ATH of 90k in 2021 simply because of its demand and limited supply.

However, Saylor or any other large holder selling bitcoin will only create short time selling pressure, but it won’t change bitcoin’s monetary policy in the long run, bitcoin’s predictable issuance and fixed maximum supply are the fundamental differences from fiat currencies, whose supply can be expanded through monetary policy.

[Moreno233]

After the war spending, the US administration do not have any chance than to print more money since there have the liberty of doing that as the easy way out. As usual, inflation will increase and the Bitcoin in our wallets will just become more valuable than they were. Even though I don't like to directly link Bitcoin price to printing of money by the US, it does have a connection just like we are seeing now. For us in Bitcoin, this should be a period of reassurance that Bitcoin is precious hence, we should hold.

[CryptoBuds]

This printing of the money to buy back their own debt is sending the clear signal that money printer is back on.

Treasury bond buyback are not same as printing new base money like Fed itself. Treasury is currently buying back existing long duration securities. I want to say this is basically debt management or liquidity operation. As far as I know, Treasury itself describes buyback as part of liquidity support and cash management.

To me, the stronger Bitcoin thesis is very simple. If U.S. govt is caught between rising debt-service cost, large deficit and higher yield then their policy choices will be increasingly constrained. If they go towards inflation or liquidity or debasement then Bitcoin’s fixed 21 million supply narrative may become more attractive. But no one knows for sure when, how fast or directly because of this BTC will ATH.

[aoluain]

This printing of the money to buy back their own debt is sending the clear signal that money printer is back on.

Treasury bond buyback are not same as printing new base money like Fed itself. Treasury is currently buying back existing long duration securities. I want to say this is basically debt management or liquidity operation. As far as I know, Treasury itself describes buyback as part of liquidity support and cash management.

To me, the stronger Bitcoin thesis is very simple. If U.S. govt is caught between rising debt-service cost, large deficit and higher yield then their policy choices will be increasingly constrained. If they go towards inflation or liquidity or debasement then Bitcoin’s fixed 21 million supply narrative may become more attractive. But no one knows for sure when, how fast or directly because of this BTC will ATH.

"we" may not know when or how fast that happens but surely at this stage it is inevitable.

Bitcoins 21,000,000 supply narrative has been looking very attractive for many years.

I heard a statistic yesterday that since Trump came to power the first term the US national
debt has doubled, I didnt fact check that but hey it was bad before, its certainly worse now
and will get worse still.

The war on Iran and their effectiveness at counter striking the US targets have put a massive
hold in their defense capabilities and hence has meant more spending on replacements.

It all signals that everyone should be running away from the $ into BTC

[leonair]

Indirectly it would help them in a way
Printing money or increasing their money supply could lead to more inflation
Which in turn would reduce the real value of current dollar
Compared to when it was borrowed.
And on the side note Bitcoin performs well as people scared of devaluation run towards assets like Bitcoin or Gold.


At the end of the day they can reduce the burden but to escape it.

Yes, printing more money will increase the inflation rate a lot. And in this case, people will invest in different places out of fear and to maintain the value of their dollar, and gold, Bitcoin and house property will be at the first level in this investment list. And since Bitcoin is now much down from its ATH, they will take two advantages at the same time, one is that they will invest to maintain the value of their money, on the other hand, since the price of Bitcoin is very low, they will be able to store Bitcoin at a much lower price and in a relatively short time they can get several times the profit from Bitcoin. Because the more investment pressure on Bitcoin increases, the faster its price will increase. And as a result, there will be a lot of positive impact on Bitcoin, some of the results of which are already being seen.

[NotFuzzyWarm]

The irony of what was supposed to be the most friendly Bitcoin administration by buying Bitcoin and establishing a so called "Bitcoin Strategic Reserve" never happened,

Trumpolini's Bitcoin Reserve plan NEVER said anything about buying BTC. From day-1 it was all about holding seized cryptocurrency vs the previously mandated requirement to periodically auction off seized assets including crypto. That is exactly what they are doing.

That same plan is what most other countries are following. Let's face it: why buy it when a country already has millions in seized coins and no doubt will be getting more from law enforcement actions?

[PrivacyG]

It does not make things better necessarily.  Printing more money, as in inflation, will 'pump Bitcoin' but will it really or is it Bitcoin simply adjusting to the new inflation numbers?  If it mostly adjusts to inflation then it helps by keeping your savings at the same level of worth but it does not increase it.  I would personally argue that Bitcoin generally will become more valuable in time, even with out inflation anyway.

Also.  I would personally not be happy or excited about a new series of money printing.  It makes things worst for the most part, on all sides.

[Ambatman]

Making their dollar worth less is it negative impact on them too it reduces their overall strength in both the stock market and the exchange market globally. To cancel that off I believe they are using strategic reserves since bitcoin is pumping.

Not explicitly
Bitcoins rise is more like a normal reaction to fear of future inflation rate
And the devaluation of the dollar.
Also they gain nothing unless they sell their Bitcoin.
Well on the impact they understand that there need to be some level of balance and won't push it.

After the war spending, the US administration do not have any chance than to print more money since there have the liberty of doing that as the easy way out.

Not just this but the interest rate on debt covers one of their biggest expenses
Hence why Trump usually push for cut in interest rate.

[Mia Chloe]

Not explicitly
Bitcoins rise is more like a normal reaction to fear of future inflation rate
And the devaluation of the dollar.
Also they gain nothing unless they sell their Bitcoin.
Well on the impact they understand that there need to be some level of balance and won't push it.

The thing is Bitcoin’s price rising doesn’t automatically mean its holders have realized gains. Until they sell it’s largely an unrealized gain. Where I’d disagree slightly is calling the rise just a normal reaction to inflation fears and dollar devaluation Those are major factors but Bitcoin’s price is kinda also heavily influenced by liquidity and overall risk appetite.

And on the “they understand there needs to be balance” part I’m kinda skeptical. Governments and institutions may understand the consequences but that doesn’t necessarily mean they’ll act cautiously. Economic and political incentives can sometimes push them to tolerate more inflation or currency devaluation than people expect.

[Antidote47k]

Rather than saying money printing automatically translates to bitcoin going up, I think you have a stronger case with persistent monetary expansion can make bitcoin more appealing as a scare resource. While the 21million supply cap is obviously an important part of bitcoin, scarcity alone wouldn’t guarantee that the price will keep going up, sufficient demand is still necessary…. So will increasing money supply actually translate into increased demand for bitcoin?? It seems possible for more money to enter the economy without that money necessarily flowing into Bitcoin

[Cookdata]

The irony of what was supposed to be the most friendly Bitcoin administration by buying Bitcoin and establishing a so called "Bitcoin Strategic Reserve" never happened, and instead this administration, no different from any other administration, is being forced to buy back their own debt in order to keep yields from going above 5%. This printing of the money to buy back their own debt is sending the clear signal that money printer is back on. Bitcoin was the first asset to react and is not above the 200 day moving average, proving that yield curve control will pump BTC to all time highs once the US government is checkmated into doing so.

Finally we are crawling out of our shell to address this scam government that made hell promises only to forget they once made promised to make Bitcoin reserve. I don't blame them though, the Bitcoin lobbyists were desperate, saw it as an opportunity to make Bitcoin and government relationship better. The government are what they are and that's what this government has displayed to us.



Small correction, the time your post was made, Bitcoin is already trading above daily 200MA indicated on red line, you might want to take note of that and confirm.

This proves that the bullish thesis for Bitcoin remains and any noise around it is just used by smarter players to accumulate a lower prices, no matter what the FUD is (hard forks, crypto regulations being against it, and so on). Facts remain: BTC remains the only asset you can truly own that is strictly limited in amount and when measured in USD it will go up on a long enough timeframe.

You can say that again, there is no asset like Bitcoin, even the government wish they can control the Bitcoin economy. They know better, the seized Bitcoin is sitting in their wallet for years, if they don't value it they would have sold them for long. However, political interest will not let them admit why Bitcoin is better. I just hope we wouldn't repeat the same mistake again. As much as I hate to say this, I fear the community is will accept another political endorsement if they come with another Bitcoin agenda.

[Ambatman]

And on the “they understand there needs to be balance” part I’m kinda skeptical. Governments and institutions may understand the consequences but that doesn’t necessarily mean they’ll act cautiously. Economic and political incentives can sometimes push them to tolerate more inflation or currency devaluation than people expect.

The economic and political incentive is already a balance
They compare the cost to the potential benefits.
They prefer inflation to deflation since to them it's controllable
If I'm not mistaken Japan recently left or had a relief from deflation after some decades.

Where I’d disagree slightly is calling the rise just a normal reaction to inflation fears and dollar devaluation

Well I said more like
I didn't really state it was a normal reaction.

[Mia Chloe]

Small correction, the time your post was made, Bitcoin is already trading above daily 200MA indicated on red line, you might want to take note of that and confirm.

Trump fucked up the whole bull. He orchestrated a bull based off volume and sheer liquidity then proceeded to use the advantage of FOMO from the masses to further fuel both directional movements. What was the result? A situation where bitcoin eventually became way more dependent on the economic conditions of the US. Let's hope we don't wake up to see another trump nuke...   Well said cookdata...

I didn't really state it was a normal reaction.

What I see as a probable problem is a scenario of bitcoin depending too much on economic factors. Yeah it does pay a role but it's getting too intense in my opinion. If this current move gets affected by an economic factor the incentive is gonna shift.

[philipma1957]

{snip other part of quote.}

0 to 398 billion took from 1776 to 1971

to be fair
I used Nixon taking us off the gold standard which is when I belief debt really took off

398 billion to 10 trillion took from 1971 to 2008 
10 to 20 trillion took from 2008 to 2017 ........... 9 years
20 trillion to 30 trillion took from 2017 to 2022   5 years
30 million to 40 trillion took from 2022 to 2026.  4 years

it is easy to Biden and trump smoked us bigly those 4+4+2=10 years

we added 20trillion to move from 20 trillion to 40trillion.

I see a real move to kill off the usd happening and as you said speeding up.

so 1776 to 1971 gold standard and deb is about 400 billion over about 200 years. say 2 billion a year

10 trillion by 2008 so 9.6 trill/36= 266billion a year with no gold standard

20 trillion by 2017 so 10 trillion/9 = 1.11 trillion a year
30 trillion by 2022 so 10 trillion/5 = 2.0 trillion a year
40 trillion by 2026 so 10 trillion/4 = 2.5 trillion a year

we likely will pass 50 trillion in 3 years. or 3.33 trillion a year.

these are impossible numbers to work

so lets see what breaks down here.

[Odusko]

The uS Bitcoin strategic Bitcoin reserve was created, and for that we need to make it clear how the United States intend to create the Bitcoin reserve and what the effects of US rising debt will do to the Bitcoin reserve accumulation, the United States Bitcoin reserve is build around.
1: Government seized Bitcoin, that is total Bitcoin confiscated by the government (forfeited Bitcoin goes into government reserve).
2: periodic buying from budgeting:
What this means is that the rising debt will lower government Bitcoin buying, since the Bitcoin reserve is not in an open market but a budgeting, when the interest rate is high government may abandon their periodic Bitcoin buying.