ROLLUP: The Fed Lowered Interest Rates: What That Means For Crypto

Bullish:

• $BTC - Bitcoin is positioned to benefit from potential yield curve control and currency debasement as the Fed adopts a third mandate, with Arthur Hayes' macro thesis suggesting Bitcoin could reach $1 million

  • “With Fed board member, Mirren, now confirmed, the main street media is preparing the world for the Fed's third mandate, which is essentially yield curve control, LFG. Bitcoin to a million.”

    Ryan·11:41
• $STABLES - Stablecoins offer superior yields compared to traditional bank accounts, with USDC providing 4.1% returns versus 0% from Canadian banks, representing a fundamental shift in how people can save and earn on their money

  • “The interest rate for most checking accounts is 0% in Canada. That makes zero sense. So from today, all Canadians can earn 4.1% uncapped rewards on USDC on Coinbase.”

    Ryan·51:43

Bearish:

• $BANKS - Traditional banks are vulnerable as they take 4% from depositors while crypto platforms offer that same 4% directly to users, creating a fundamental misalignment that threatens the banking model

  • “The banks are taking 4% of your money, and crypto actually wants to give you that 4%. Whose side are you on? Who's gonna be on team bank?”

    Ryan·50:16
• $FIAT - Weak fiat currencies face collapse as stablecoins provide exit liquidity for savers, with the dollar milkshake theory suggesting early stages of dominoes falling for low-quality fiat currencies

  • “The existence of stablecoins give fiat currencies and holders of fiat currencies, savers of fiat currencies, an alternative. And so why would they hold the Ghanaian SETI CD?”

    David·55:35