Why Aren't Altcoins Pumping?

Alexander Lorenzo breaks down why altcoins haven't rallied yet, pointing to Fed policy as the key. Two governors dissented on rates, Trump is pushing for cuts, and the yen carry trade could unwind. When interest rates drop, money flows into riskier assets like altcoins.
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So we just had an event happen in the Federal Reserve we haven't seen for 30 years. It's so rare that this has only happened 2 times in the history of all the Federal Reserve. And the second time just happened 2 days ago. And the details behind the scenario really expose and answer the question, why aren't altcoins pumping? So what I want to do is explain in as much detail as I possibly can, because I needed this research today to understand what I'm doing with my portfolio. So if you haven't heard the news, on July 30th, they decided to keep the interest rates the same at 4.25% to 4.5%. And so this is obviously significant. The Federal Reserve is like the most important variable in my research process, and obviously really important for Trump as well, the President of the United States that wants the economy to flourish. And he basically went on the internet and publicly bashed him, Jerome Powell, for keeping the interest rates the same. And I'm going to show you exactly what he said and what this means for our economy. But the point is, is that this is the main focal point of my research. If they drop interest rates, that means that Money will flow into the economy. We know this. But if they keep interest rates the same, it's constricting us at 4.25% to 4.5%. And Trump has been trying to get Jerome Powell, which is the head of the Federal Reserve, the Federal Reserve chair. He's been trying, he's been telling him, he's been bashing him on the internet. You know, he did this whole thing where he audited the Federal Reserve's buildings to see if they're spending money unwisely and actually went to the Federal Reserve building. This is like the main focal point here. This is like the main battle. Economically right now. Now, that's the side story. The main story of what I'm trying to explain is it's not just Trump. Now there's people within the Federal Reserve leadership that are doing some very significant things that we have not seen in 30 years. Not only have we not seen it in 30 years, it's only been seen one other time since 1936. We've never seen this before, really. Except for in 1993. So basically what happened is we had 2 board governors dissent at the same time. So there's kind of like this power hierarchy in the Federal Reserve and they vote, right? There's 12 votes and 2 of them, we have 2 dissents, mean 2 people voted against what they were doing. 2 people, usually it's 1 person, but in this case, 2 people at the same exact time, and this was the Board of Governors, which is one of the highest places in the Federal Reserve. When we look at the Federal Reserve, people typically only think of Jerome Powell, right? This guy is the lead of everything, and yes, he has a lot of power. We're going to talk about that, but I just released an entire course in our groups that talks about the Board of Governors and the power dynamics that they have in the Federal Reserve, and there's other people involved, and they do have significance. And so when we see things like this where 2 people dissent from the Board of Governors, it is significant and it sets the tone for what's going to happen in the future. So for example, as you can see right here, Jerome Powell is the Fed chair. One of the disadvantages that he has is that he only has 4-year terms. 4-year terms, meaning he has to get reelected, right? Well, obviously he's like the public face, right? Public influence. He has the agenda-setting power. He directs what the FOMC and board focus on. He's basically the leader, but he's not the only one. Because if we scroll down, you can see something very, very important. When it comes to the Board of Governors, they have 14-year terms. As you can see right here, 14 years. Some of these people have been in there for 14 years. So in the background, they're shaping policy, they're voting, they're talking to people, they have connections, they're influencing things here. influencing things there. And so when 2 of them stepped down, and the only other time we've had this happen was in 1993, and since 1936, which is like the limit of all the data according to their archival history, if you look in the archives of the Federal Reserve, we've never seen this before. And I'm gonna explain the details behind this recent one. The last one that happened in 1993 led to an interest rate decision within 54 days. I say this is significant and you need to pay attention. So let's pay attention. What is a dual dissent? Basically, there's 12 votes and 2 of them— a dual dissent means 2 governors voted against the chair's decision to keep interest rates the same. And both of those Board of Governors keep calling for interest rates to drop, which is what we've been looking for. We want interest rates to drop because again, that means more money in the altcoin market. So to answer the question, this is why we haven't pumped yet. But again, I just want to be clear, the last time this happened in 1993, 54 days later there was an interest rate decision changed, right? So we see the calm before the storm. That's what it feels like right now is the calm before the storm. We're not going to see extreme volatility. I don't see anything super crazy, right? Bitcoin did drop a little bit, but we see this internal disagreement. This shows a lack of unity to the public, and it does invoke a little bit of fear and uncertainty in people in the market that understand this. This shows a major internal disagreement, and this usually comes right before a turning point in Federal Reserve policy. Waller and Bowman think Powell is wrong, and they're trying to basically say it publicly, and they're coming into unity. There's a fraction, there's a fraction within leadership in the Federal Reserve, and it's probably because Trump has been pushing aggressively against the Federal Reserve. And I'm going to expose, I believe, what Trump is doing. I don't know exactly, no one knows people's thoughts, but I believe that Trump's plan is really, really good for us, extremely good. I'm gonna show you what I'm talking about, exactly what he's doing, and with the Federal Reserve. But basically, right after this happened, Trump goes on the internet and says, you stubborn moron, the worst Fed chair in history. He literally urged the entire Federal Reserve Board to assume control and override Powell's authority. He accused Powell of trying to destroy the economy for political reasons. He claims that he had legal grounds to remove Powell due to cost overruns on the Fed office renovations. He basically went to audit the Fed, the Federal Reserve office renovation, and he's using that as a way to really push Jerome Powell, whatever the case is. But he sees, and I want you to pay attention to this, this is the main point. Trump, obviously the President of the United States that has access to all this information, all these resources and everything, he's the leader of our country. He sees rate cuts as a critical part of his strategy, and so should you. If he wants the market to go up, right? I've said this statistic many times, no one knows the exact calculations, but according to statistics, Trump made anywhere from 20% to 40% of his entire net worth within the last year off of crypto, right? And so if he's trying to make more money, you already know what's going down. Like he's going to try to make it work, right? And if he keeps focusing on the Federal Reserve and he spends all this energy, All this public perception on the Federal Reserve. I mean, I think it's important that we all focus really, really hard, and I will be updating you guys on these detailed Federal Reserve videos. So like the video, subscribe to the channel as well. We're doing this to start a crypto movement—an unbiased, uncompromised crypto movement—and I really appreciate you guys for being here. But let's go into what's going on. It's basically a war, and we could dive into more detail. But like I said, just 52 days later, on February 4th, after This happened. The two board governors, the same thing happened in 1993. 54 days later, they changed interest rate policy. So this is really rare. Like I said before, this is there's no other examples from except for today and December 14th of 1993. There is no other examples in the last 90 years of the entire central bank history. So just think about that. They've been in unity for a very long period of time, bro. Very long. They've just been unity, unity, unity. So what's happening, right? Like, it's kind of like, okay, let's peel the curtains back even more. Like, what's really happening? Why is Trump so obsessed with the Federal Reserve? And what is he trying to do for the altcoin market, cryptocurrency, and stocks? So there's 2 main things that we need to focus on so that we can understand what Trump is trying to do, and that's the tariffs. So obviously in recent history, Trump has been putting a lot of tariffs in all over the country. A whole bunch, but at the same time, he's been pressuring the Federal Reserve with rate cuts. He's been telling them, "Hey, we need to lower rates as aggressively as possible." If we look at both of them together, it gets really interesting, right? So the first point I want to make is that in 2023, the United States led the world in consumer spending with $8.8 trillion. And yeah, basically the point is that's twice as much as China spending. So the main point I want to explain is that in America. people spend more money. Money in America, people spend more money. So there's like that one element that no other place on the face of the planet— I know we've all seen those charts where it's like the world's wealthiest countries and America is like not number one, but in this case, they spend the most money. So think about all of those businesses, think about all of those rich billionaires that make money off of sales in America, right? They're gonna be affected by the tariffs, right? And if we combine that with the interest rate policy, it gets really, really interesting. So let me scroll down. And I also want to explain this as well because this is interesting as well. It's called the yen carry trade, right? So understand these dynamics, right? And the yen carry trade is when investors borrow in a currency with low interest rates like the Japanese yen and invest it at a higher yield— yielding currency like US dollar. So we have— okay, just be clear, I'm gonna go over it one more time. We have United States, which they spend the most money, right? We have all these businesses that want to sell products in the United States for a fact because they spend the most money. At the same time, the United States is the world reserve currency, meaning the world has adopted USD as the primary currency, right? So they have that power at the same time, right? And then we have something called the yen carry trade. It's one of the most significant. I forgot the exact number. It's in the trillions. But basically what they do is their governments, They lower their interest rate policy. Listen, they lower their interest rate policy and they take the money, they print money because— and they have very low, it's like negative yield in some countries. What negative yield means is basically they literally will pay to print money. I know it sounds crazy, it's like a weird situation, but interest rates could be zero. That basically means it's free money. Anyone could just take a loan in yen in their country, but in some cases, the government will actually pay the person money. They'll be like, okay, take this loan and I'll pay you money, right? It's crazy, but it's a real thing. And so what they do is they devalue their currencies as aggressively as possible, right? They just keep devaluing it, devaluing it, and then they take the money and then they put it in the United States because the United States has yield, right? So yield is basically a return on your capital. You could put it in a United States Treasury and get get guaranteed 5% back. So there's this kind of feedback loop where other countries devalue their currency, they take their money, dump it in the United States, and they get a higher yield, right? So we have businesses coming to the United States, we have billions of dollars coming to the United States. I don't know if you guys know this, but besides the Federal Reserve and the government, countries are the biggest purchasers of US debt for this exact reason. They purchase US debt because The United States gives you an IOU for a guaranteed return, right? Listen to what I'm saying. They give you an IOU. They say, okay, if you give me $1 billion, I'm going to guarantee through a Treasury that you get 5%. It's not exactly 5%, it changes, but I'm going to guarantee it. You're going to get your original purchase back plus 5% guaranteed, no ifs, ands, or buts. And so these countries are just like, we're going to devalue our money, just devalue it, devalue it, and we're going to put it in the United States. So it's kind of like other countries are lagging in comparison to what the United States does when it comes to economics, right? This is kind of a standard principle. Why? Because again, I want to say it very clearly, the world reserve currency is USD and the Federal Reserve controls the interest rates. Interest rates are basically, you know, everybody talks about printing. The printing or the not printing decision comes from Jerome Powell and And those 12 people we talked about, right? And everybody is subjected to USD, right? And so like everybody's kind of like enslaved to United States economics. That's basically what I'm trying to explain here from different perspectives. And the Federal Reserve controls that, right? So this is where it gets really interesting. If you understand these dynamics of the yen carry trade, it's a big significant thing. It's in, I think, trillions of dollars. I haven't looked at the statistics, but there's trillions of dollars of debt purchased from Japan because they're just killing their own yen and using that money to buy government debt. That's the yen carry trade. So let's expose what Trump is trying to do, because if you combine all the elements, it becomes very obvious. Let's take a look. So Trump pushes for rate cuts. It stimulates what? US consumer demand. People start spending more money. Because it's cheaper to borrow money. We know this. Very, you know, this is Economics 101. Look at it in ChatGPT if you have to. You could take the transcript of my videos on YouTube to transcript.com, take the transcript, put it into ChatGPT, and ask it questions so you truly comprehend it. But the point is, the Federal Reserve, when they drop interest rates, it's cheaper to borrow money. People start buying stuff. They start buying more cars, more houses, and all asset prices usually go up. Okay, so think about that in combination with imposing tariffs on foreign goods. Now, for you to sell something in the United States, you got to pay a higher fee, which is like 30% or whatever, depending on the country. You got to pay a fee to come in here. So we got a situation where there's a lot of spending going on over here, but you got to pay a fee to come and spend with us. I mean, to come and sell with us, sell something to us so that we buy your stuff. At the same time, we have foreign capital that's entering the carry trade. And then at the same time, companies want access to the US. So we're going to see a shift of companies all over the world building an entire company in the United States just to save on that tariff policy. Because think about it, imagine if your profit margins are like 50% and you're making $30 billion, $100 billion, or whatever the case is, And you have this whole new fee where of your profits, you got to pay like 30% of your profits. It's literally more economically smart for you to just create the business in the United States. If the majority of all of your products get sold in the United States, yeah, you might as well, including China and all these big— yeah, they will do it because they're here for the money. So that same kind of situation where people are putting their money into debt Right? United States debt because they make more money. The same thing could happen with the businesses. So we're talking about infrastructure and liquidity at the same time flowing into the United States because of what Trump is doing. So take a look at the country-specific tariffs because these are not small tariffs. 50%, 35%, 30%. Look at China and Mexico. They're the biggest importers into the United States, and it looks like 30%, bro. That's a lot. That's not a joke. So I do anticipate that people are going to, just by the base of making money, they're gonna start moving to the United States if he actually follows through with the tariffs, which brings more infrastructure, more innovation, more building. And at the same time, if they devalue— listen to what I'm saying— if they devalue the United States currency by printing money, if they start printing money, if they— listen to what I'm saying— if they start printing money, catch what I'm saying, And the Federal Reserve drops interest rates, that means that that gives an increase, an increase of likelihood that these businesses that sell to the United States— like, think about it, if they stay in their country, they're getting this extra 30 to 50% tax and they're missing out on all the new business. It increases their— like, think about it, let's say they're generating $20 billion. If they're generating $20 billion Right? And then Trump gets the Federal Reserve to drop interest rates. They drop interest rates. Their $20 billion is going to turn to like $30, $40 billion because there's much more demand in America specifically because of the printing of money. There's more demand, more demand, more printing, more buying in America. So that increases the likelihood of them wanting to create a business in America because they save more, because they're making more. Right, it's very simple, but what's happening is important. And like I explained, we have 2 Board of Governors stepping down. The last time this happened was 30 years ago in 1933, and before that, we have never seen it before. And the Board of Governors have a 14-year term versus Jerome Powell's 4-year that he has to get reelected. Right? There's a clear issue within the Federal Reserve. There's a fraction, there's a lack of alignment, there is distress in the Federal Reserve, right? At the same time, there's a massive incentive for them to drop interest rates, right? Listen to what I'm saying. This is really interesting. So if it starts playing out according to his plan, he's essentially— the best way I could explain it is he made it really easy for people to come to America and invest with infrastructure and to buy our debt. That's what Trump did. He made it really easy. But then at the same time, if they drop interest rates, that's like putting fuel on the fire. Trump created the fire. Dropping interest rates would drop like a massive amount of fuel on the fire, which answers the question, why hasn't the altcoin season happened? Or why haven't altcoins pumped What's going on with crypto? It's because of the FOMC meeting and keeping interest rates the same. And again, in 1993, when the two board of governors stepped down, listen to what I'm saying. Then 54 days later, interest rates changed. Now in that case, it increased because that's the time they were in. But in this case, because of everything that's going on, I've made videos about this. If you look at the economic projections of the Federal Reserve. They say it from their mouth. I made a video about Jerome Powell saying that he's gonna— he basically verbally admitted to saying that interest rates should drop by the end of the year 0.2 basis points twice. So that's half a basis point by the end of the year. So the Federal Reserve, by their projections, by Jerome Powell's mouth, has basically said that interest rates are dropping towards the end of this year. We see a power struggle of them increasing the speed. Like, hey, Jerome Powell, let's— like, they're trying to— Trump, they're all trying to say do it faster or we're going to cause chaos. And fractions are pulling out their weapons to like really urge Jerome Powell. So I'm telling you, next FOMC, it is very likely that interest rates will drop. Very likely. Combine that with the tariffs, it's like a fire with fuel behind it. Into our economy, into altcoins. And so now you have a very small period of time to actually sit there and start researching altcoins, accumulating altcoins. I mean, do whatever you want, but that's what I'm doing. I'm spending the majority of my time researching and accumulating, researching, accumulating, researching, accumulating. Now I'm wise. I use risk management. By the way, I don't know if you guys knew this. I actually have risk management strategies. Inside of my groups. So as you can see right here, risk management strategies that you guys can use when you purchase a coin so that you're not gambling. Not only that, we're also doing an entire $500 giveaway for anyone that uses our core research strategy. I just give my entire proprietary strategy that took me literally 8 years to cultivate. I just give it away for free. And then not only do I give it away for free, but I also come over here, we do a 100 rep Research challenge, and we revise all of your research. It's ridiculous. And so right now, it's just simply find altcoins accumulate, find altcoins accumulate. The calm before the storm, like I've been saying in this video. And at the same exact time, guys, like I'm literally just like I'm trying to make sure as many people benefit from this altcoin cycle as possible. That's literally what I'm trying to do. So to take advantage, if you go to any of my videos, there's a free group in the pinned comment. If you go to the pinned comment. It says free group. It's not really free. It's a 7-day free trial and then $1 a month after. That's it. I think most people won't— not most people, but I'm saying the person that decides and they get discouraged by $1 a month, I think the reason why you're discouraged is because you just didn't want to do the work in the first place. And so there's really a thin line between gambling and investing. And if you haven't done research or you don't want to do research, you're gambling. And that's okay. I think some people are okay with gambling. But I'm not okay with gambling, so I just want to throw that at you guys. And if you have any questions, my DMs are open in the school community. I answer them. Thank you guys for being here. I appreciate you so much. I'll catch you guys in the next video. Just to kind of put again the cherry on top, the whole thing I'm seeing is the calm before the storm. The calm before the storm, and the storm is a fire. Trump made the fire. The Federal Reserve dropping interest rates will put fuel on the fire. Remember that it's coming soon. Thank you guys for watching. Catch you in the next video. Peace out.










