Latest / Simply Bitcoin / Fed Restarts QE? Why This $54B Pivot Changes Everything for Bitcoin! | Bitcoin Simply

Transcript

Fed Restarts QE? Why This $54B Pivot Changes Everything for Bitcoin! | Bitcoin Simply · Simply Bitcoin

• 0:00
  Jerome Powell and the Fed just restarted the money printer.
• 0:03
  And just to be clear, everybody, this is not QE.
• 0:06
  I repeat, this is not QE. It's reserve management
• 0:09
  purchases. Regardless of what they want to
• 0:11
  call it, the Fed is purchasing $40 billion in Treasuries a
• 0:15
  month starting today. And for the first month, they're
• 0:18
  going to actually purchase $54 billion.
• 0:20
  Call it reserve management, call it technical operations, The
• 0:23
  markets don't care. Liquidity is rising and gold
• 0:26
  stocks and Bitcoin should respond accordingly.
• 0:29
  Meanwhile, the the FTC chair just announced that Bitcoin can
• 0:32
  be used as collateral by big banks and ironically, Michael
• 0:35
  Saylor was also posting a picture cryptic picture from
• 0:39
  himself inside of a bank. I believe that this marks the
• 0:41
  beginning of Microstrategy's Bitcoin strategy making its
• 0:45
  profits go through the roof. All the noise about them not
• 0:48
  being a profitable company might have just gone out of the window
• 0:51
  with this announcement. And I'll explain exactly why.
• 0:53
  These are huge stories for Bitcoin heading into 2026, and
• 0:57
  I'm going to break it down. This is Dante Coke with Bitcoin.
• 0:59
  Simply, let's go. Can you imagine a press
• 1:05
  conference with Jerome Powell at the podium?
• 1:07
  So we're going to start reserve management purchases at $40
• 1:10
  billion a month starting tomorrow.
• 1:12
  We're doing this to maintain liquidity in ample reserves in
• 1:14
  the system. This is not QE.
• 1:16
  I repeat, this is not QE. These are called reserve
• 1:19
  management purchases. Question for you in the back.
• 1:22
  So Jerome Powell, let me get this right.
• 1:24
  We're creating $40 billion a month out of thin air that
• 1:27
  doesn't have to be repaid by the banks that are being injected
• 1:30
  directly to the banks. Is this not just another form of
• 1:33
  quantitative easing? Yeah.
• 1:35
  Someone please remove Susan from the press briefing room
• 1:38
  immediately. Thank you.
• 1:40
  The New York Fed, regardless of what you want to call it, says
• 1:42
  that they're taking the $40 billion a month and raising it
• 1:45
  by fourteen, $54 billion in Treasury bills are going to be
• 1:49
  purchased tomorrow and injected directly to the banking system.
• 1:52
  These are always permanently temporary programs.
• 1:55
  When Bernanke said the QE program starting in 2008 and
• 1:58
  2009 was temporary, well, it's been rising ever since.
• 2:02
  Look at this chart. The temporary took off in 2009
• 2:06
  and it grew all the way until 2020 where it exploded.
• 2:11
  It's how the system works. At this point.
• 2:13
  Debt must expand and the dollar must be devalued in order for
• 2:16
  the US dollar hegemony to continue to work and operate
• 2:19
  around the globe. And This is why assets like
• 2:21
  stocks, gold, and Bitcoin always go up over time.
• 2:24
  These are fixed assets that are being flooded with an unlimited
• 2:27
  supply of dollars. But let's be clear, these
• 2:29
  purchases alone aren't enough to move markets.
• 2:31
  However, it's a major pivot in Signpost.
• 2:34
  When you couple this with the plans of the current
• 2:36
  administration, well, you have to be bullish on assets like
• 2:39
  Bitcoin going into 2026. This administration is clearly
• 2:43
  of the opinion that we need to be in growth mode.
• 2:45
  Is also market should go up and we should keep driving it up and
• 2:48
  have it keep going up and let it be much, much bigger, much, much
• 2:53
  better. And you know, growth doesn't
• 2:57
  mean inflation. They're always afraid that all
• 3:00
  we have and if there is inflation, that's OK, then we
• 3:03
  can slow it down. But we should be able to do a
• 3:07
  lot better than three and four. We're scheduled to be at 4%,
• 3:11
  which is pretty amazing because we have a, you know, deadhead
• 3:15
  Fed, Fed hair. I mean, this guy, the head of
• 3:19
  the Federal Reserve is a stiff and, you know, you fight that.
• 3:25
  It's amazing. We fight that.
• 3:27
  And yet interest rates are going down, except with him, not too
• 3:33
  much. He did a, he did a rather, I
• 3:37
  would say a rather small number that could have been doubled, at
• 3:40
  least doubled. He said the rate cuts should
• 3:42
  have been at least doubled from the 25 basis points that we just
• 3:45
  got earlier this week. When you couple this with the
• 3:48
  fact that the administration has a ton of ammo in order to go on
• 3:51
  growth mode, they just announced that they had the lowest
• 3:53
  deficit, 52 billion, the lowest deficit since June of 2020.
• 3:58
  This is pretty big news. -52.8 billion.
• 4:02
  That's a better lower trade deficit than we expected.
• 4:06
  We were looking for a number closer to 62 billion.
• 4:09
  And that follows a revised -59 billion -, 52 billion would be
• 4:15
  the lightest. Going back to wow, we're really
• 4:18
  going back. Well, my records go back to 1992
• 4:25
  and to find a smaller number that mine is 52 billion, we're
• 4:29
  all the way back to June of 2020.
• 4:32
  And when you couple this with the fact that the president said
• 4:35
  that the only imperative for the new Fed chair to come in is to
• 4:39
  lower rates and to do so immediately.
• 4:41
  I want to ask about interest rates because a lot of Americans
• 4:44
  agree with you that they're too high.
• 4:45
  You're going to pick a new Fed chair soon.
• 4:48
  Is it a litmus test that the new chair lower interest rates
• 4:51
  immediately? Yes.
• 4:52
  Donald Trump didn't even let her finish her question.
• 4:55
  Yes, that's how eager he is to cut rates.
• 4:58
  And no wonder he's so eager. the United States has a massive
• 5:00
  problem on their hands. Look at this blue bar on this
• 5:03
  chart. This is $9 trillion worth of
• 5:05
  debt that is coming due and needs to be refinanced in 2026.
• 5:09
  Well, they're going to be refinancing them at much higher
• 5:12
  rates than they were when they were virtually 0 when they
• 5:15
  borrowed them in 2020, which means the interest payments that
• 5:18
  we are now paying are going to go up dramatically.
• 5:20
  We're already paying over $1.2 trillion a year in interest
• 5:23
  payments. This means that this
• 5:25
  administration has to go, go, go and grow, grow, grow.
• 5:28
  That's the only way to outpace the interest payments in the
• 5:30
  amount of debt that we need to supply the system to actually
• 5:33
  grow. And all of these things are
• 5:35
  massive catalyst for Bitcoin, not to mention the fact that the
• 5:38
  CFTC chair said that Bitcoin can now be treated and used as
• 5:42
  collateral within the financial system.
• 5:45
  Well, good morning and thank you so much for having me here on
• 5:47
  the show. So I think what's really
• 5:48
  important to understand is that we are doing a limited pilot
• 5:51
  program that has important guardrails that are in place
• 5:54
  because we've seen with the events that have happened on
• 5:57
  offshore exchanges that it's more important than ever that
• 6:00
  Americans deserve safe U.S. markets under US regulations.
• 6:05
  So what we've done to structure this pilot program is that if
• 6:08
  you are using a CFTC broker, which is what are our futures
• 6:12
  Commission merchants, those are registered by us, those are
• 6:15
  overseen by us and the National Futures Association, which is
• 6:18
  like FINRA, you will be able to use Bitcoin, Ether and USDC to
• 6:23
  collateralize contracts that are denominated in those Bitcoin,
• 6:28
  Ether or USDC and it's basically in kind collateral.
• 6:32
  So that's very limited in what you can do.
• 6:35
  You can't use it instead of cash for example, but you can use it
• 6:38
  to collateralize those in kind contracts and then we are
• 6:41
  putting into place. Just to be clarify, it's.
• 6:43
  In kind so. Bitcoin for.
• 6:45
  Bitcoin, or could it be Bitcoin for Ethereum?
• 6:48
  Bitcoin for Bitcoin. So if you're going to settle in
• 6:50
  Bitcoin, it's denominated in Bitcoin, you can collateralize
• 6:52
  it with Bitcoin because it's the same way risk.
• 6:55
  And we have enhanced CFTC monitoring and reporting in
• 6:58
  place. So for three months we are
• 7:00
  requiring that we not only get weekly a position and asset
• 7:04
  class reporting that's on top of the normal reporting that our
• 7:08
  exchanges do, but we are also asking for a reporting of any
• 7:12
  significant operational issues relating to that digital asset
• 7:16
  collateral. So again, this is a Safeway to
• 7:19
  understand the technology, to understand the uses for these
• 7:23
  assets, but in a controlled way. There's been a lot of talk about
• 7:26
  why Bitcoin is valuable and why Bitcoin treasury companies have
• 7:29
  been stacking Bitcoin, and Jack Mahler's has been recently
• 7:33
  talking about why they have an opportunity that's been left in
• 7:36
  the market from Coinbase and from micro strategy not offering
• 7:39
  and creating digital credit and digital lending products.
• 7:42
  Well, I think that window is actually being closed.
• 7:44
  Listen to Jack talk about this here and I'll tell you why that
• 7:46
  he might be wrong and behind the ball.
• 7:48
  Said listen, you know bitcoins compound annual growth rate over
• 7:52
  the last five to 10 years, call it 50% a year of an easier way
• 7:55
  to conceptualize that level of growth is it double S every 18
• 7:59
  months. People want to create a cash
• 8:02
  liquidity event with their Bitcoin without selling it,
• 8:04
  without having a capital event, a capital trigger on that.
• 8:08
  And so the fact that there isn't a market for them to borrow
• 8:10
  against it for different credit products, lines of credit termed
• 8:14
  loans, we think we can live in that space.
• 8:17
  We are shocked that this is a $2 trillion asset class going on
• 8:21
  what we believe to be 20 trillion and 200 trillion.
• 8:23
  And there are fundamental financial services that no one
• 8:27
  of our scale and size is focused on, right?
• 8:29
  We look at a coin base and we're like what a successful business,
• 8:33
  you know, in earnings and in net profit, but nobody's focused on
• 8:36
  Bitcoin credit. And we look at a strategy,
• 8:38
  acquired a lot of Bitcoin, but nobody's building products.
• 8:42
  I believe that strategy is actually going to beat them to
• 8:44
  the punch. MicroStrategy holds 660,624
• 8:48
  Bitcoin, and now they can effectively begin leveraging
• 8:50
  that collateral to lend to other banking partners and
• 8:53
  institutions who want to get into Bitcoin.
• 8:55
  Their CEO, Fong Lee talks about this right here.
• 8:58
  Fong, to switch gears just a little bit, in terms of other
• 9:00
  types of businesses that strategy could be involved with
• 9:04
  lending a Bitcoin, it reached a record high in the third
• 9:07
  quarter. Why hasn't strategy gotten
• 9:09
  involved? Yeah, we, we run a very simple
• 9:13
  business, right? I've been, I've been doing this
• 9:16
  for 10 years now, five years with Bitcoin.
• 9:18
  We buy and we hold Bitcoin. I do think over the course of
• 9:22
  the next year and I'm quite excited about it.
• 9:24
  Traditional finance entering the Bitcoin world, companies have
• 9:29
  made announcements, Citibank, Morgan Stanley and others.
• 9:32
  You know, big real banks are going to offer custody service,
• 9:36
  lending service and staking and otherwise.
• 9:40
  I think when they enter that space and we have different
• 9:43
  counterparties, it's something we would we would consider and I
• 9:45
  think would be enthusiastic about.
• 9:47
  They're going to now effectively be able to gain a yield on the
• 9:50
  Bitcoin that they hold as a treasury asset when they lend it
• 9:53
  to other institutions who are looking to get into Bitcoin.
• 9:55
  This aligns with the In Kind conversation that Caroline Pham
• 10:00
  announced the CFTC chair in that former clip, and this means that
• 10:03
  MicroStrategy is going to be able to generate massive amounts
• 10:07
  of profits from their own Bitcoin stack.
• 10:09
  Before we go any further as to why this is important for
• 10:12
  Bitcoin heading into 2026, let's thank our sponsors.
• 10:15
  Lenin has been one of the leaders in Bitcoin back loans
• 10:17
  since 2018, issuing nearly $10 billion worth of loans at this
• 10:21
  point to 10s of thousands of customers all across the globe.
• 10:24
  They do so fast, transparent and in a simple manner.
• 10:27
  You could get a loan that this collateralized up to 50% loan to
• 10:31
  value. Meaning if you want a $1000 loan
• 10:34
  in Fiat, well, you post $2000 in Bitcoin collateral.
• 10:37
  The loan actually isn't rehypothecated or lent out to
• 10:40
  anyone else. You just unlock liquidity from
• 10:42
  your Bitcoin in a safe, smooth, simple and transparent manner.
• 10:45
  The Fiat gets into your account in less than six hours and the
• 10:48
  application takes just two minutes.
• 10:49
  There's no credit check and the loan started just 12.4% or you
• 10:53
  get .25% off your first loan by going to the link at learn dot
• 10:58
  LED and dot AO. Simply don't sell your Bitcoin.
• 11:01
  Work with the Bitcoin way. If you're interested in growing
• 11:04
  in your Bitcoin journey from a person who just buys Bitcoin on
• 11:07
  an exchange to someone who holds it in self custody, there's some
• 11:10
  steps in order to do that. And coaches from their team will
• 11:13
  walk you through how to do that privately, safely, securely, and
• 11:16
  confidently so that you can become a sovereign individual in
• 11:19
  your Bitcoin journey. Schedule a free 30 minute
• 11:21
  consultation with their team at the bitcoinway.com/simply
• 11:24
  Bitcoin. Adam Back just talked about
• 11:26
  major banks getting into Bitcoin recently, talking about how this
• 11:29
  is a major move for Bitcoin and its predictions are already
• 11:32
  coming true. Yeah.
• 11:33
  I mean, I think, you know, having experienced the previous
• 11:36
  5 and 10 years and things have moved much, you know, in the
• 11:39
  short term, people don't see this speed of development.
• 11:42
  But if you go back five years, it's, you know, it's pretty
• 11:45
  surprising where we are. If you go back 10 years, you
• 11:48
  wouldn't have expected at that time all of the major banks to
• 11:51
  be buying to provide Bitcoin related products and services,
• 11:54
  making more portfolio recommendations, soften wealth
• 11:56
  funds, buying Bitcoin, pension funds, all, all of these things.
• 12:01
  And there's been a lot of regulatory improvement over this
• 12:05
  past year as well in terms of the types of banks that are now
• 12:09
  able to be custodian. So I think that opens the gate
• 12:12
  for people. Major banks are rolling out
• 12:14
  Bitcoin access and they're going to need the backing of Bitcoin
• 12:17
  and crypto native companies to do it.
• 12:19
  Like PNC who's working with Coinbase in order to offer
• 12:22
  Bitcoin backed services to their customers.
• 12:24
  They're going to be rolling out buying, holding, trading and
• 12:27
  lending products and credit products to their customers in
• 12:30
  2026. You couple this with the fact
• 12:32
  that more everyday Americans are going to be getting Bitcoin
• 12:34
  through this type of Ave. But what if they're also holding
• 12:37
  an in their retirement accounts? Congress is begging for Bitcoin
• 12:40
  to be held as an asset in their 401 KS.
• 12:42
  Can you imagine $9 trillion worth of retirement assets
• 12:45
  flowing into Bitcoin? What if everyday Americans hold
• 12:48
  it in their banks, in their checking accounts, in their
• 12:50
  retirement accounts? Do you really think Bitcoin is
• 12:53
  going to 0 at that point? And This is why we are in the
• 12:55
  digital gold rush and why Bitcoin is going to go up 20 to
• 12:58
  50% a year for the next decade. It's not going to take much for
• 13:01
  this entire market to move. We're in a digital gold rush
• 13:05
  over the next 4 to 8 years. We think institutional adoption
• 13:08
  increases drastically. We think sovereign adoption
• 13:11
  increases drastically. We think digital credit starts
• 13:13
  to permeate throughout the rest of the market because of that
• 13:16
  those dynamics, you've got even the Bitcoin ETF being the most
• 13:20
  successful ETF in history. That success is going to breed
• 13:23
  more success and it already has. So because of those dynamics,
• 13:27
  the macro environment we see probably next 4 to 8 years
• 13:31
  between a 30 to 50% compound annual growth rate for Bitcoin.
• 13:35
  And we think that will start to taper off as economies of scale
• 13:40
  and large economies of scale start to come into play.
• 13:45
  Once bitcoins at a $10 trillion assets, it's probably going to
• 13:47
  be significantly less volatile and the compound annual growth
• 13:51
  rate will will be reducing over over time into the future.
• 13:54
  But you think we get 30 to 50% over the next decade?
• 13:57
  Yeah, I'll take it. Yeah, I'll take that.
• 13:59
  Right. I mean, you look, you look at
• 14:01
  the last is 7 years and it's been like 7070% compound annual
• 14:07
  growth rate even what in 2022 is at 16,000 and what we're in
• 14:11
  90,000 right now. What is what is that?
• 14:13
  That's annualize that that's, that's you know, 7080% probably.
• 14:20
  And I don't think it takes a lot of capital to to to move it, to
• 14:27
  move it much higher. And so one of the interesting
• 14:31
  things in the Treasury world is that like when strategy came
• 14:33
  out. We have plenty of ammo right now
• 14:35
  and there's still plenty of people that are bearish heading
• 14:37
  into 2026. We have the money printer or
• 14:39
  shadow QE reserve management purchases of $50 billion a
• 14:43
  month, albeit not a lot starting to happen, which means this is a
• 14:47
  major pivot for the Fed and for this administration removing
• 14:50
  from a scenario of quantitative tightening to quantitative
• 14:53
  easing. And when you couple this with
• 14:54
  the fact that this administration is in go, go, go,
• 14:56
  go, grow, grow, grow mode because they have a bunch of
• 14:59
  debt due and because this president and this
• 15:01
  administration is very clear about their stance on growth and
• 15:05
  moving the American industrial revolution forward.
• 15:07
  When you add up all of these things and major banks getting
• 15:10
  into Bitcoin, you have a scenario that is a bullish
• 15:13
  cocktail heading into 2026. These are just my thoughts, but
• 15:17
  what are yours? I'd love to hear them in the
• 15:18
  comments. One of the ways that you can
• 15:20
  continue to grow in your Bitcoin journey is not by just buying
• 15:23
  Bitcoin in exchanges. It's by participating in the
• 15:25
  network by adding more hash power on the network.
• 15:28
  That means you can earn Satoshi's while you sleep
• 15:31
  safely, confidently, and with no middle men or no markups.
• 15:34
  You can do that by working with a company like SAS Mining.
• 15:36
  We can buy a state-of-the-art mining Brig and machine that
• 15:39
  gets plugged directly into the Bitcoin network with carbon free
• 15:42
  100% renewable energy. You'll get SAT streamed directly
• 15:46
  to your wallet without you needing to lift a finger, cool a
• 15:49
  machine, or worry about your basement being noisy because you
• 15:52
  have a bunch of Bitcoin miners in it.
• 15:53
  Use this QR code to get started with Carefree free
• 15:57
  state-of-the-art Bitcoin mining services with SAS mining.
• 16:00
  This is Dante Coco Bitcoin Simply.
• 16:02
  Thanks for tuning in and if you haven't already done so,
• 16:04
  subscribe to the channel Happy Stacking.