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30th January 2025 > > Powell & Trump.

Updated: Feb 1

tl;dr

Market Manipulator Powell does a 180 with respect to cryptos. Trump’s crypto vehicle, World Liberty Financial, is accused of insider trading.


Market Snap


Market Wrap

Overnight strength in the face of diminished expectations of interest rate cuts throughout 2025 suggests a rosy short-term outlook for BTC, even though spot BTC ETF inflows have slowed to a trickle for the last two days. Meanwhile, altcoins, notably ETH, continue to underperform leading to speculation that altseason is still a way off. Some people are just too impatient.


Curious Cryptos’ Commentary – Jerome Powell

Jerome Master of Market Manipulation Powell, Fed Chair, decided yesterday to leave the current manipulation of dollar interest rates unchanged. One of the great myths of our time is that central bankers are independent of their political masters. Well, Powell proved otherwise in the press conference following the announcement on interest rates.


Until now, Powell has given no vocal support or encouragement to the crypto industry. The election of the new very crypto-friendly administration has led to a sharp about-turn from Powell. In response to questions about cryptos, he said that banks are “perfectly able to serve crypto customers”, in stark contrast to his earlier stance as a supporter of SAB 121, which specifically blocked regulated institutions from providing crypto custodial services to clients.


That key plank of Operation Choke Point 2.0 has been swept away, and look what Powell now has to say about that:


“We’re not against innovation, and we certainly don’t want to take actions that would cause banks to terminate customers who are perfectly legal just because of excess risk aversion, maybe related to regulation and supervision.”


That’s a 180-degree pivot from Powell, because of the change in his political master, who has threatened to fire Powell. There is some debate about whether Trump has the authority to do so or not, but Powell is shoring up his defences by ensuring that his public stance on cryptos now aligns with Trump and not Biden.


On the subject of crypto regulation, we have another about face from Powell:


“I do think it would be helpful if there were a greater regulatory apparatus around crypto … I think that would be a very constructive thing for Congress to do.”


Don’t get me wrong, I am all in favour of Powell’s total flexibility to respond to his political master’s demands to abandon Warren and become publicly pro-crypto, but this myth of central bank independence? Pah!


Curious Cryptos’ Commentary – Oh dear

This is not a good story, broken by The Milk Road, a near daily newsletter that is almost as entertaining and insightful as the CCC. I highly recommend it. Sign up here:



Trump’s crypto platform is known as World Liberty Financial. With many different crypto investments, its own coin, and the recent launch of the TRUMP meme coin, there is a lot of activity. Two days ago, the firm made an investment in MOVE.


Minutes later, CoinTelegraph reported:


“JUST IN: Elon Musk is exploring blockchain technology to track US government spending, secure data, process payments, and manage federal property, aiming to boost transparency and reduce waste, though critics warn of potential challenges.”


Not a surprising piece of news in itself. Musk’s fondness for all things crypto related is well-known. What was surprising was that one of the blockchains that was specifically mentioned was … Movement, the issuer of MOVE. An immediate 42% pump in the price benefitted World Liberty Financial.


It is just about possible, I guess, that this was an instance of sheer coincidence, but it’s not a good look as Trump’s crypto vehicle is accused of insider trading.


This is a prime example of why Warren’s anti-freedom and anti-liberty army – including former members Gensler and Powell – which worked so hard to prevent the development and adoption of clear regulations around cryptos, was so in the wrong at all times.

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