← Coin Stories with Natalie Brunell
Coin Stories with Natalie Brunell
News Block: Fed to Cut Rates as Economic Data Worsens, Tether Launches U.S. Stablecoin, Gemini Goes Public, A Tribute to Charlie Kirk
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In this week's episode of the Coin Stories News Block powered exclusively by Ledn, we cover these major headlines related to Bitcoin, macroeconomics, and global finance: Fed under fire: Markets see a 96% chance of a .25% rate cut as Trump and...
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Welcome to the Coin Stories news block, powered exclusively by LEDN. I'm Natalie Brunel and in about 10 minutes or less I'll provide you with insightful updates on Bitcoin, financial markets and the global economy. Everything you need to know in one block. Let's go. This week, all eyes are on Jerome Powell. The market is betting 96% odds that the Fed will cut rates by 25 basis points, and the pressure from Trump and Treasury Secretary Scott Bessant has been relentless. Who has? Who knows? They may surprise us and cut 50 basis points. Last week, Besant continued his onslaught when he published an op ed called the Fed's Gain of Function Monetary Policy in the International Economy, where he was extremely critical of the Fed's policies, which he described as socialism for investors and capitalism for everyone else. Bessant's main point was simple. The Fed needs to stop distorting financial markets with its actions. He argued that unconventional tools like QE quantitative easing should be reserved only for true emergence, and calls for an entire review of the Fed as an institution. Besant shared the article in a tweet that said, quote, the Federal Reserve is among the foremost drivers of inequality in America. By failing to deliver on its inflation mandate, the Fed allowed class and generational disparities to grow worse, expanding the divide between asset owners and lower income Americans. The Fed must regain its independence and stop serving the wealthy at the expense of everyone else. I highly recommend reading the piece in full. It's pretty remarkable to hear a sitting treasury secretary making statements like this publicly. And I have to admit that I agree with many of the things Besson said to me. The macro implication here is that political figures are getting more involved in Fed policy, not less. And that usually means more inflation. Even so, while the Fed will likely do exactly what the White House wants this week, Powell will insist it's about the economy and not politics. Fears of recession are growing as labor data keeps weakening. Just last week, the BLS revealed nearly 1 million fewer jobs were created between April 2024 and March 2025 than originally reported, making it the largest negative payrolls revision ever. Not exactly a sign of a healthy economy. At the same time, housing has been flashing warning signs. A Wall Street Journal piece revealed that about 70% of new federal Housing Administration, or FHA borrowers last year had risky debt to income ratios, compared to only 28% in 2012. And here's the kicker. The article reports that one reason mortgage delinquencies aren't already near 2008 global financial crisis levels is because the FHA has waived or reduced payments on nearly 1.2 million mortgages, or about 15% of its portfolio, that is a big deal. The FHA has been essentially propping up struggling homeowners, which makes the housing market look a lot healthier than it really is. It's essentially a bailout, not by cutting direct checks to homeowners, but by modifying loans so borrowers don't officially fall into delinquency or foreclosure. That, of course, pushes the risk onto the fha. And if things unravel, it's ultimately taxpayers through FHA insurance who will be required to absorb the shortfall. We've seen this before. In 2013, the FHA needed a $1.7 billion taxpayer bailout after its insurance fund ran dry following the global financial crisis. This was the first time in it needed such a bailout. Housing fragility matters. It's not just another sector. It is the foundation of household wealth and consumer confidence. A real pullback could ripple across the economy. And maybe that's why the Fed seems so eager to cut rates now to front run the deterioration that they're already seeing in the data. Regardless of the Fed's motive, history shows rate cutting cycles tend to weaken the dollar and strengthen scarce assets like Bitcoin. So when the Fed goes on to cut rates, it adds yet another tailwind for Bitcoin's price moving forward. The News block is powered exclusively by ledn. Need cash, but don't want to sell your Bitcoin? Leden is the global leader in Bitcoin backed loans, issuing over $9 billion in loans since 2018. And they were the first to offer proof of reserves. With ledn, you get custody loans, no credit checks, no monthly payments and more. To learn more, visit LED in IO Natalie My followers get a quarter percent off their first loan Turning now to some big news on the stablecoin front. Tether, the world's largest stablecoin issuer, has announced a new US Regulated dollar backed token called usat. And they've appointed Beau Hines, former executive director of the White House Crypto Council, as head of its American division. The company reports that this new stablecoin will comply with the new Genius act, saying signaling Tether's serious push into the US market, officially putting other stablecoin issuers like Circle and Paxos on notice. Alongside the launch, Tether shared some staggering numbers. In just six years, it's gone from zero to a $169 billion market cap. Also, it now serves a mind boggling 477 million users and processes around $45 billion in daily transactions. This means Tether is moving volumes on par with some of the biggest credit card networks in the world. Lastly, Tether Shared it's now the 18th largest holder of US Treasuries, owning more T bills than entire countries. Numbers like this aren't just grabbing investor attention, they are really shaping policy. Treasury Secretary Scott Bessant and President Trump have both said stablecoins could help drive dollar dominance and provide steady demand for U.S. debt. And this past week, a senior advisor to Vladimir Putin, Anton Kobakov, alleged that the US is orchestrating a scheme to offload its $37 trillion of by rewriting the rules of gold and crypto markets. Think about that. Russia's leadership is openly framing US Stablecoin and bitcoin strategy as geopolitically important. If you've been following analyst Luke Gromen's work, which we've highlighted extensively here on the news block, you know this idea is not as far fetched as it may sound. Today, gold is having a historic year in returns, really better than bitcoin, and central banks are buying it at record pace. But bitcoin is also solidly positive on the year, and governments are beginning to embrace it. And the US Dollar, Stableco volumes are exploding. So maybe this Kobakov fellow is onto something. If the US really is shifting away from the dollar as a reserve asset toward neutral reserves like gold and bitcoin, while cementing the dollar's role as a medium of exchange through stablecoins, then rallies in bitcoin and gold aren't just likely to continue. They may be just getting started. And with the Fed expected to cut rates, that could be another tailwind. Bloomberg's Eric Balchunas recently shared a chart showing a record $7.3 trillion sitting in money market funds. As rates come down, some of that cash is going to be looking for a new home. The future of money is being rewritten right now, and bitcoin is at the center of it all right. A trend we've been tracking here on the news block is the surge in digital asset IPOs after the success of Circle and Bullish. Two more companies went public last week. First was Figure Technology, which is a blockchain lender and infrastructure provider. And the company's shares jumped 44% on debut, lifting its valuation to 7.6 million billion. The other was Gemini, founded by the Winklevoss twins, which raised? 425 million and saw its stock pop 32% in its Nasdaq debut, giving the company a $4.4 billion valuation. Now, one detail stood out. Nasdaq itself invested 50 million in Gemini, signaling strong institutional confidence in the crypto Exchange. With over 21 billion dollars in assets and 285 billion in lifetime trading volume, Gemini is one of the largest exchanges in the world and has also recently been making waves with its Bitcoin Bitcoin credit card, which lets users earn stats back on everyday purchases. Here's how the Winklevoss twins explained it on cnbc.
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Every time you swipe, you can earn Bitcoin or any, any crypto that we support. And I think that people realize that up to 4% back. Up to 4% back.
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Yeah.
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And that's in crypto real time rewards. You could buy a flat screen and earn Bitcoin back and in the future that Bitcoin could be worth more than the original purchase.
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They also mentioned bitcoin going to 1 million. No big deal. But it's crazy to think that earning 4% back in Bitcoin when buying a TV could one day be worth more than the TV itself. But it's totally true. That's the power of Bitcoin's compounding growth. The big takeaways here are twofold. First, Gemini's Bitcoin credit card shows how Bitcoin is steadily integrating into the payment system. And second, the wave of IPOs shows investor appetite for Bitcoin linked companies in public markets and is heating up. All right, I'd like to wrap up this news block on a personal note and address the horrific public assassination of Charlie Kirk, a public figure I had come to admire over the years. As I shared on X, I've been really struggling with this senseless act of violence that took place last Wednesday when conservative activist Charlie Kirk was shot and killed while speaking at Utah Valley University. He leaves behind his beautiful wife, Erica, and their two young children. My heart is broken for them. Charlie was a man of deep faith, and the only thing I take comfort in right now is believing that his soul is now at peace with his creator. If you've followed my work, you know that I try to stay out of politics as much as I possibly can because everything has become so divided today. And honestly, I've been disenchanted by both parties throughout my life. So I've made it a point to really stay in my lane. Because the one thing that's given me hope in this broken world is bitcoin. Not because it belongs to one team or the other, but because I truly believe it's something we can all eventually get behind. What unites us are deeper truths. Freedom, connection, love, faith and hope. Charlie understood this deeply. I also believe a deeper source of all of our division is really the corruption of our money. When money is monopolized for the benefit of a few, everything else erodes in society. Our morals, our responsibility, our long term thinking and vision, even our sense of purpose. And too many young people have lost hope today. Yet Charlie rose in that moment. He inspired a generation that was handed a mountain of debt, a global financial crisis, broken institutions, and a world stripped of trust. And he inspired them to believe in a better future. That is extraordinary. Charlie lived out the values that so many of us in the bitcoin community aspire. Courage, truth, and responsibility. I have long believed that he was poised to become one of Bitcoin's strongest, most eloquent advocates. And it's so sad to think of the impact that we'll never know due to his loss. But there are two things that you cannot kill. A soul and an idea. I'm praying for Charlie's soul. And I know the ideas he championed will live on in the hearts of millions. He was the ultimate freedom fighter. A peaceful freedom fighter. To Erica, to their children, and to Charlie's friends and community, we're praying for you. And in Charlie's spirit, I'm going to keep using my platform to speak clearly and peacefully about what I believe to build bridges, not walls. For me, that means explaining how bitcoin can help restore trust in our society, secure our freedom, and bring us together. Thanks so much for listening. Have a great week. That's it for the news block. Your weekly Bitcoin and economic news update. Powered exclusively by ledn. I'm Natalie Brunel. Make sure you're subscribed to Coin Story so you never miss an episode. This show is for educational purposes and should not be construed as investment advice. Until next time, keep stacking.