The Strategy Behind the Trump–Powell Panic
Big players in the market orchestrated the Trump–Powell panic to fulfill their liquidity needs.
How It Unfolded
The New York Times revealed the sequence of events:
Initially, Trump considered firing Powell, causing the dollar to drop, gold to spike, and Bitcoin to fluctuate.
However, within 15 minutes, Trump retracted his statement, stating he had no plans to act. This led to the dollar bouncing back and the liquidity window closing.
The Playbook
Here’s a breakdown of the steps involved:
Step 1: Creating Demand
A fund aims to accumulate a large position but faces a scarcity of sellers at existing prices. To avoid slippage, they induce fear and capitalize on panicked selling.
Step 2: Spreading Fear
Initiating with a fabricated article on an obscure platform, the misinformation gains credibility when picked up by mainstream media.
Step 3: Amplifying the Narrative
Freelancers are incentivized to propagate the false narrative across prominent media outlets, while social media adds fuel to the fire.
Step 4: Market Manipulation
Algorithmic trading strategically targets vulnerable markets, triggering a rapid price decline to prompt fear-induced selling and liquidations.
Step 5: Smart Money Moves In
Following the market turmoil, institutional investors capitalize on the increased liquidity to establish significant positions, while retail investors exit the market.
Step 6: Shifting Sentiment
With a new headline refuting the initial claims, sentiment stabilizes, prices recover, and the orchestrated move concludes.
Key Takeaway
By the time headlines emerge, the actual market manipulation has already taken place. Recognizing these tactics is crucial to avoid being unwittingly involved in such orchestrated events.
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