See below for 05/28 update. This post was originally published on May 27th.
Bitcoin
Bitcoin
Subscribe now Crypto and Blockchain Advisor to Forbes And in the aftermath of Bitcoin's halving, “discover the blockchain blockbuster that's poised to deliver gains of over 1,000%.”
With Bitcoin's price currently trading at around $70,000 per Bitcoin, up nearly 400% from its lows after the FTX collapse in late 2022, the market is preparing for a likely game-changer coming from the 2024 presidential election.
After a legendary trader predicted the Federal Reserve would start printing money again later this year, Treasury Secretary Janet Yellen issued a dire warning about the nation's spiraling $34 trillion debt, which some believe could send Bitcoin's price soaring to $1 million in the next 18 months.
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U.S. Treasury Secretary Janet Yellen said the Federal Reserve's interest rate hikes … [+]
“We have raised our interest rate forecasts,” Yellen said. Bloomberg “There is certainly a difference,” he said on the sidelines of a G7 meeting of finance ministers and central bank governors in Italy. “It will be a little more difficult to contain the fiscal deficit and interest payments.”
According to a recent analysis by the Congressional Budget Office, interest payments on the U.S. Treasury bill are expected to reach $870 billion this year as inflation soars in the wake of massive spending and money printing during the coronavirus pandemic, forcing the Federal Reserve to raise interest rates at an unprecedented pace.
“There's a big hole, and there's a loss that needs to be recognized,” Jack Mallers, CEO of bitcoin payment app Strike, told influencer and YouTuber Anthony Pompliano. “That loss comes from devaluing the currency. Asset prices are going to go up, but what's the best asset, the best performing asset? What's the best money in the history of mankind? So I think it has to be priced accurately.”
Mallers said he believes that as a result of the Fed's money printing causing the U.S. dollar to fall, people “would be willing to pay $250,000 for one Bitcoin.”
Update May 28: Former US President and Republican 2024 presidential candidate Donald Trump has reportedly asked whether Bitcoin could be used to solve the US national debt problem. according to Reporter Collin Wu. Bitcoin Magazine The cryptocurrency adviser to the Trump campaign reportedly made the comments during a live broadcast on X TV on Sunday.
“Bailey revealed that when he first met with Trump, he asked if Bitcoin could help with the $35 trillion debt,” Wu posted. “Bailey responded that he had some ideas but wasn't ready to discuss the topic during their first meeting.”
Bailey, after Bitcoin prices rose over the weekend following positive legislative developments in Washington. Posts To X: “It's important that everyone calls this the Trump Pump, gives Trump all their faith, and thanks and celebrates him when they get the chance.”
Bailey is part of a growing group of bitcoin and cryptocurrency entrepreneurs, developers and influencers who have thrown their support behind Trump in recent weeks following his newfound support for cryptocurrencies.
Trump has made millions of dollars selling crypto-based digital trading cards and recently began accepting campaign contributions in the currency. President Joe Biden has said he wants to see a “slow and painful demise” of Bitcoin and cryptocurrencies in the United States.
“I have a very positive and open mind about cryptocurrency companies and everything related to this new and fast-growing industry,” Trump said. Posts Enter Truth Social, an X social media clone that launched in 2022.
“I think it's still early days in the bitcoin story,” said Mallers, who was involved in El Salvador's historic bitcoin adoption experiment in 2021. “I've said publicly that I think bitcoin will hit $250,000 to $1 million this cycle, so right now we're talking about the next 10 to 18 months.”
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Bitcoin prices have soared in the last year, surpassing previous all-time highs.
Earlier this year, analysts at Bank of America warned that the US debt load would grow by $1 trillion every 100 days, which would lead to a surge in the price of Bitcoin.
“The U.S. national debt is growing by $1 trillion every 100 days,” Michael Hartnett, chief strategist at Bank of America, said in a client note. CNBC“It's no wonder we're seeing 'debt write-down' deals near all-time highs,” he added. That means gold. [at] $2077/oz [and] Bitcoin [at] $67,734.
Hartnett predicted that the newly launched spot bitcoin exchange-traded fund (ETF), which took Wall Street by storm last month, will have “an explosive year of growth” thanks in part to the collapse of the U.S. dollar.
