Bitcoin And Crypto Brace For A Huge $36 Trillion April Fed Price Flip
The cryptocurrency market has been on high alert as investors and traders await the next move from the Federal Reserve. According to Arthur Hayes, the cofounder of crypto derivatives pioneer BitMex and founder of Maelstrom investment company, the Fed is about to trigger a massive price boom in bitcoin and other cryptocurrencies.
A Shift in Fed Policy Could Spark Chaos
Hayes' prediction comes after the Federal Open Market Committee (FOMC) kept interest rates on hold last month, sparking concerns that the Fed would signal a shift towards lower interest rates. However, President Donald Trump has been calling for rates to be lowered immediately, citing his plan for wide-scale international trade tariffs.
"The Fed would be much better off cutting rates as U.S. tariffs start to transition (ease!) their way into the economy," Trump posted on his Truth Social account last week. "Do the right thing."
Wall Street and Washington Take Notice
The White House and Wall Street are taking notice of the Fed's stance, with legendary crypto trader Arthur Hayes warning that anyone can be affected by the Fed's decision.
"Nobody is safe, not even the chairman of the Federal Reserve," said Massachusetts senator Elizabeth Warren. "If [Trump] can just mow through every civil servant, if he can just mow through the Consumer Financial Protection Bureau, it’s a form of lawlessness and all the power belongs to the king."
The Bitcoin Price Takes a Hit
Bitcoin prices have taken a hit in recent days due to inflation fears, U.S. president Donald Trump's tariff threats, and fresh fears over a new, mystery hack.
The bitcoin price has fallen back toward $80,000 per bitcoin after soaring toward $90,000 this week, even after the confirmation of a long-awaited bitcoin game-changer. However, some experts believe that the Fed's decision could spark a massive recovery in the cryptocurrency market.
A Combination of Trump's Tariffs and Dovish Fed Signals Bitcoin Recovery
10x Research founder Markus Thielen has predicted a combination of Trump's softening of tariffs and an increasingly dovish Fed is setting bitcoin up for a recovery. "Bitcoin is attempting to form a bottom, supported by Trump’s recent shift toward 'flexibility' on the upcoming April 2 reciprocal tariffs, softening his earlier rhetoric," Thielen wrote in an emailed note.
The $36 Trillion Debt Pile
Hayes believes that the Fed is "teasing" a return to "stealth" money printing known as quantitative easing even as it's grappling with the $36 trillion U.S. debt pile that's spiraled out of control since 2020.
A Potential Price Flip
According to Thielen, the bitcoin price could be about to rebound toward $90,000, setting up for a massive price flip. "Powell’s mildly dovish tone suggests that the Fed’s put remains intact, providing further support for a recovery in stock prices," Thielen added.
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