November 3rd, U.S. Federal Reserve Chairman Jerome Powell ultimately hinted at the start of the cut, resulting in a loss of Bitcoin and other cryptocurrencies. The market has moved sideways since then, cooling off after a rally that took BTC from $ 40,000 to price discovery above $ 65,000.
Related reading | Fed’s Powell Confirms Inflation Persistence, Could Reduction Stop Bitcoin’s Rally?
Meanwhile, fund investors turned mathematical artist Nelson Saiers hit Wall Street again with one of his iconic sculptures. Part of a series of concept art installations slated for release in the coming weeks, Saiers’ sculpture is called ‘Cheap Money is Out of Service’ and has been placed in front of the iconic Wall Street statue. Bull in response to FED Powell.
Below you can see the sculpture in all its glory. The piece features a vintage chewing gum machine that offers people $ 10, alluding to the historical figure of Alexander Hamilton, whose ideas helped create the FED, for just 50 cents as a statement made on the monetary policies of the institution in particular âcheap moneyâ.
Equally important is its location, as it has been placed at the heart of America’s financial industry. As you can see below, the chewing gum machine has a sign that says ‘out of service’ highlighting the moral issues that have been raised about the FED in recent years.
Speaking to Bitcoinist about the sculpture and what it represents in a world where people have lost faith in institutions, resulting in greater adoption of Bitcoin, the artist claimed the following:
I think people are nervous. The Fed’s balance sheet has grown tremendously over the past 13 years and has more than doubled since spring 2020. You see more and more concerns about real inflation. I mean Jack Dorsey said he was concerned about hyperinflation. I think that comes along with fundamental questions about the beneficiaries of these policies, for example the ultra-rich have benefited significantly from the appreciation of stocks and assets.
Bitcoin and the bull, a hedge against the FED
As Bitcoinist reported, Saiers has a long tradition of calling on the FED. In 2018, the artist placed a huge inflatable Bitcoin rat in the US Federal Reserve building. Similar to his last play, The Rat conveyed a general feeling of mistrust and lack of confidence in the institution.
Related reading | Nelson Saiers’ inflatable Bitcoin rat is back to take on the Fed
Saiers’ work is a representation of moral issues with government officials, especially within the FED, apparently using their influence to profit from market fluctuations. Certain measures have been put in place by the institution to mitigate this behavior, but the reputation of the FED as well as its monetary policies seem “cheap”, “messy”, insufficient and tarnished by hidden interests. The artist said:
(â¦) In addition to all this, real ethical questions have recently been raised due to the activity of the personal accounts of several Fed presidents. I think this has put the system itself under some control.
Bitcoin was born in response to this demand for transparency and fairness. As the global economy enters a period of uncertainty, once again this appears to be the only solution for those who want to pull out of the FED and their inflated $ 10 bills.
At the time of going to press, Bitcoin remains constrained in the low level of $ 60,000. The Fed’s quantitative easing program, which is expected to slow with the start of the cut, has been a major driver of the year-over-year rise in BTC prices.
Related reading | SEC too “understaffed” to properly regulate crypto, Chairman Gary Gensler
In this sense, some experts expect downward pressure as liquidity begins to be withdrawn from global markets. In the long run, the risk of inflation remains a bullish tailwind for the benchmark crypto, as institutional investors and individuals buy Bitcoin to hedge against it.