Last Title: «Bitcoin Is Not Volatility — It’s a Signal: Why the Financial System Is Shifting Faster Than Most Realize»
December 2025 may be remembered as a turning point for global money. Not because of a dramatic market crash or a sudden crisis, but because of a clear and public message: political power wants cheaper money, fast.
After the Federal Reserve cut interest rates to 3.5% the third cut of the year the reaction from the White House was immediate. The move was labelled insufficient. The demand that followed was far more aggressive: interest rates at 1% or lower by 2026. That means slashing rates by more than two percentage points in less than a year.
For most people, this sounds like just another policy debate. For anyone paying attention to Bitcoin, it’s one of the most important monetary signals of the year.
What a 1% Interest Rate Really Means
The Federal Funds rate is the foundation of the entire financial system. It influences mortgages, loans, bonds, savings accounts, and investment decisions worldwide.
Lower rates do stimulate growth. Cheaper borrowing encourages spending, investment, and risk-taking. Jobs follow. Markets usually cheer. From a political perspective, the logic is clear.
But context matters.
Inflation is still running around 3%. That means a 1% interest rate creates negative real rates of roughly -2%. In simple terms: holding cash guarantees a loss of purchasing power. Saving becomes a penalty, not a reward.
This isn’t an accident. It’s a feature.
Negative real rates quietly transfer wealth away from savers and towards borrowers, asset holders, and governments. Stocks rise. Real estate inflates. Debt becomes easier to manage. The currency itself slowly weakens.
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The End of the “Independent” Central Bank Illusion
Central banks are meant to operate independently, guided by data rather than politics. That story sounds good on paper. Reality is messier.
Public pressure on the Federal Reserve has never been more explicit. At the same time, the current Fed Chair’s term ends in mid-2026, and potential replacements are already being discussed. The message is unmistakable: comply, or be replaced.
Whether rates are cut willingly or forced through leadership change, the result is the same. Monetary policy is revealed for what it truly is a political tool.
And markets notice.
Bitcoin Has Seen This Movie Before
This isn’t theory. History already gave us a clear case study.
2020: Rates go to zero. Liquidity floods the system.
Bitcoin rises from under $5,000 to nearly $69,000 in 18 months.2022: Rates surge from near zero to over 5%.
Liquidity disappears. Bitcoin drops more than 75%.2024–2025: Rates start falling again.
Bitcoin climbs back above $100,000.
The pattern is consistent. Cheap money fuels risk assets. Expensive money drains them.
If rates move toward 1%, liquidity doesn’t just return it accelerates.
Why Bitcoin Benefits More Than Anything Else
A move to 1% rates creates a perfect storm for Bitcoin:
1. Liquidity Flood
Cheap borrowing pushes capital into speculative assets. Bitcoin sits at the top of that list.
2. Currency Debasement
When inflation outpaces interest, fiat money loses value by design. Bitcoin’s fixed supply becomes increasingly attractive.
3. No Real Alternatives
Savings accounts lose money in real terms. Bonds struggle to keep up. Investors are forced outward into stocks, real estate, and digital assets.
4. Institutional Momentum
Bitcoin ETFs have made access simple. Millions of coins are already locked up by funds, pensions, and corporations and buying continues.
5. Narrative Alignment
Bitcoin was created precisely for moments like this. A system immune to political pressure, with rules enforced by code, not committees.
What If It All Goes Wrong?
Even the darker scenarios point back to the same conclusion.
A recession could cause a short-term crash but history shows recovery follows liquidity.
Regulatory pressure may increase but that validates Bitcoin’s role as a non-sovereign asset.
A credibility crisis for the dollar would push investors toward assets outside political control.
Whether the system inflates smoothly or fractures under pressure, Bitcoin remains the escape valve.
The Bigger Story Most People Miss
This isn’t just about price targets or short-term gains.
It’s about watching the monetary system expose its weaknesses in real time. Interest rates shaped by political demands. Currency value treated as negotiable. Savers quietly taxed through inflation.
Bitcoin doesn’t need promises, elections, or approval. Its supply is capped. Its issuance is predictable. Its rules don’t change based on who holds office.
No president can demand more Bitcoin. No central banker can dilute it. No committee can vote to rewrite its monetary policy.
That’s not speculation. That’s design.
The Choice Ahead
As 2026 approaches, the direction is becoming clearer:
Hold cash and accept steady loss of purchasing power.
Seek exposure through traditional financial products.
Or step outside the system entirely.
A demand for 1% interest rates didn’t just signal easier money. It exposed how fragile and political the system has become.
Bitcoin exists because of that reality not in spite of it.
And as the pressure builds, its reason for existing has never been more obvious.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Canadas is not responsible for any financial losses.
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