8 hours ago
The week has begun connected an absorbing note, with the U.S. dollar crashing to three-year lows alongside losses connected Wall Street, yet bitcoin, which usually follows the sentiment connected Wall Street, stands tall.
This could conscionable beryllium the beginning.
The displacement distant from the USD and toward seizure and censorship-resistant assets similar BTC and stablecoins could accelerate if President Donald Trump follows done with his reported plans to occurrence Federal Reserve Chairman Jerome Powell, which person pushed the DXY and U.S. banal markets little today.
That's the acquisition from Turkey, which has seen its currency, the lira (TRY), illness implicit the years chiefly owed to President Recep Tayyip Erdogan's repeated interference successful the cardinal bank's operations. The sliding lira has triggered a superior flight into BTC and stablecoins since astatine slightest 2020-21.
Trump's issues with the Fed
Trump has feuded publically with the Federal Reserve and its chairman, Jerome Powell, for years, criticizing Powell for being excessively precocious connected complaint cuts adjacent during his archetypal word erstwhile involvement rates were mode little than today.
However, Trump's disapproval has precocious reached a fever transportation with reports suggesting helium is looking for ways to get escaped of Powell, who precocious warned of stagflation adjacent arsenic the President reiterated calls for little borrowing costs portion suggesting determination is nary inflation.
Powell's diligent attack follows a commercialized war-led spike successful survey-based measures of inflation expectations, which could ever go self-fulfilling.
Still, connected Monday, Trump went further, calling Powell a "major loser" and informing that the system could dilatory down unless involvement rates are instantly lowered.
Lesson From Turkey
Erdogan began interfering successful the cardinal bank's operations successful 2019, and since then, the lira has collapsed sevenfold from 5.3 per dollar to 38 per dollar.
It each started with Turkey's ostentation complaint reaching treble digits successful 2017. It remained elevated successful the consequent year, which prompted the country's cardinal bank to increase the one-week repo rate from 17.5% to 24% successful September 2018.
The determination apt didn't spell good with Erodgan, who issued the archetypal decree dismissing Central Bank of Turkey (CBT) politician Murat Cetinkaya successful July 2019. From past connected until the extremity of 2021, Erdogan issued aggregate decrees dismissing and hiring respective CBT officials. Amid each this, ostentation remained elevated, and the lira continued to depreciate astatine an alarming rate.
"We surely don’t judge successful precocious involvement rates. We volition propulsion down ostentation and speech rates with low-rate argumentation … High rates marque the affluent richer, the mediocre poorer. We won’t fto that happen," Erdogan said successful 2021.
As of 2025, Turkey faces an ostentation complaint of astir 40%, according to information root TradingEconomics.
This occurrence serves arsenic a cautionary communicative for Trump, highlighting that tampering with cardinal slope independency — particularly successful the look of looming ostentation — tin erode capitalist assurance and nonstop the home currency into a tailspin.
This does not needfully mean that the USD volition clang precisely similar lira but whitethorn spot important devaluation.
Perhaps it could beryllium adjacent much destabilizing for planetary markets, considering the dollar is simply a planetary reserve currency, and the U.S. Treasury marketplace is the bedrock for planetary finance.
If amended consciousness fails to prevail, U.S. investors whitethorn consciousness incentivized to determination distant from U.S. assets and into BTC and different alternate investments, conscionable arsenic Turks did.
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