Bitcoin’s value has more than doubled since August lows, driven by Tesla billionaire Elon Musk’s skepticism towards the US dollar. The cryptocurrency’s price has now surpassed its previous all-time high and reached over $106,000.
Analysts warn that a combination of economic stagnation and soaring inflation could become the “biggest nightmare” for the Federal Reserve in 2025. A report from asset management giant Apollo predicts a rebound in inflation, leading to potential interest rate hikes.
US debt has risen to over $34 trillion, fueling concerns about a looming “debt crisis.” Inflation rates have been higher than expected, forcing the Fed to hike interest rates at a historical clip. The market is now bracing for a 0.25% interest rate cut by the Federal Reserve, but traders are advised to be cautious due to uncertain economic conditions.
Fears of “stagflation” – a combination of rising prices and slowing growth – have been voiced by some experts, including technology investor Chamath Palihapitiya. The Federal Reserve’s decision on interest rates next year will likely influence market dynamics.
Source: https://www.forbes.com/sites/digital-assets/2024/12/18/the-feds-biggest-nightmare-is-suddenly-coming-true-as-bitcoin-price-surges