Bitcoin has surged to an all-time high of over $106,000, surpassing its previous peak, amid speculation about US President-elect Donald Trump’s plan for a bitcoin game-changer. The surge comes after Tesla billionaire Elon Musk fueled doubts about the future of the US dollar.
Analysts warn that the Federal Reserve may be facing its “biggest nightmare” in 2025 as stagflation is expected to hit, leading to higher interest rates and inflation. This has pushed the bitcoin price more than double since August lows.
The prospect of a US debt crisis, sparked by Trump’s policies including tariffs, deportations, and tax cuts, also raises concerns about inflation and its impact on the economy. Economists predict three further interest rate cuts in 2025, but a Financial Times poll suggests the Fed may take a more cautious approach due to these policies.
Bitcoin’s price surge has been fueled by expectations of this week’s interest rate cut and predictions that momentum will continue to drive growth. Analysts believe the move into all-time high territory confirms bullish bias, with Alex Kuptsikevich stating that an acceleration in growth is likely if unexpected news from traditional financial markets doesn’t stop the rally.
As investors and traders weigh these developments, it’s essential to stay informed about market trends and potential changes in economic policy. The CryptoCodex daily five-minute newsletter provides timely insights into the bitcoin and crypto market bull run.
Source: https://www.forbes.com/sites/digital-assets/2024/12/16/the-feds-biggest-nightmare-is-suddenly-coming-true-as-bitcoin-price-surges