Elon Musk targets the Fed, and Metaplanet buys more Bitcoin

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Last Updated on 23 December 2024 by CryptoTips.eu

Elon Musk has set his sights on the Federal Reserve, criticizing it on X (formerly Twitter) for employing an absurdly high number of staff. Alongside Donald Trump, Musk is campaigning to slash $2 trillion in government spending. The central bank faced a barrage of criticism following an unexpected “hawkish rate cut” that rattled markets. While stocks and Bitcoin dropped sharply, the backlash against Chair Jerome Powell intensified.

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United against “excessive bureaucracy”

Musk, the future head of Trump’s newly established Department of Government Efficiency (D.O.G.E.), and entrepreneur Vivek Ramaswamy have ambitious plans to reorganize the U.S. government. The Federal Reserve, with around 24,000 employees spread across 12 regional banks, is at the top of their list. According to Musk and Trump, this number is far too high.

Trump even called Jerome Powell’s role as Federal Reserve Chair “the easiest job in government.” He added, “You show up once a month, mumble something vague, and leave the rest to chance.”

Although the Fed is smaller than some of its European counterparts, such as the central banks of Germany and France, Trump and Musk’s goal remains clear: to “cut the fat,” as Trump described it during his campaign.

Christine Lagarde of the European Central Bank defended her staff, stating, “Our people work tirelessly, not just once a month, but every single day.”

Bitcoin and the Impact of Institutional Buying

Meanwhile, in the crypto world, Japanese investor Metaplanet made headlines with a massive Bitcoin purchase. On December 23, the company acquired 619.7 BTC for approximately $60 million, with the price hovering around $96,000 per Bitcoin. This is their largest purchase since they began investing in the crypto market in May 2024.

Metaplanet now holds a total of 1,762 BTC, worth approximately $168 million. This positions the company among the largest Bitcoin holders in Asia. Significant purchases like this often impact Bitcoin’s price, and the markets are closely monitoring these moves.

In other news, Michael Saylor encouraged Jeff Bezos to invest in Bitcoin as well.

Potential consequences of Musk’s new role

The collaboration between Musk and Trump puts the Federal Reserve in a difficult position. While Jerome Powell has remained silent so far, the attacks from the White House seem to be escalating. With D.O.G.E. at the helm, it’s clear the Federal Reserve must prepare for significant changes.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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