President Donald Trump’s renewed trade war causes great fluctuations in the financial markets. The US dollar loses trust, stock indexes such as the S&P 500 and Nasdaq achieved strong losses, and the fear of an economic crisis is growing. At the same time, investors-both in traditional and in crypto-assets-are eagerly looking forward to action by the Federal Reserve.
Fed hint on intervention at Marktonrust
The Federal Reserve (FED) follows the situation closely and is ready to intervene if necessary. Susan Collins, chairman of the Boston Fed, indicated that the central bank is “absolutely prepared” to intervene as markets. Those words provided a renewed wave of optimism, partly because it is expected that interest rates and liquidity injections are on the table again.
Dimon and Hayes: Crisis becomes turning point for bonds and crypto
Top banker Jamie Dimon predicts that the Fed will soon intervene in the nearly $ 30 trillion large market for American government bonds. According to him, it is even necessary to relax rules for institutional investors to prevent further disruption.
In the crypto world, this uncertainty leads to speculation about a new eret of monetary stimulation. Arthur Hayes, co-founder of Crypto Exchange Bitmex, expects the FED to “print” dollars again to support the markets. In his vision, that would create the perfect climate for a new Bitcoin rally.
“If the FED open the money tap again, Bitcoin can reach a price of $ 250,000 at the end of 2025,” said Hayes. Given the current rate of around $ 85,000, that would amount to an increase of almost 200%.
Altcoins could also ride on this macro-economic trend, provided that the markets stabilize.
Speech Powell can determine new direction
On Wednesday, FED chairman Jerome Powell will speak in Chicago. The financial world looks tense. Will the Central Bank again proceed to relax? And what does that mean for the future of the dollar, bonds, and crypto currency such as Bitcoin?
Data from Polymarket in any case suggests that the chance of intervention increases. In February, the chance of four interest rates in 2025 was still estimated at 7%. In the meantime, that percentage has risen to 15%.
In the coming days, it can therefore be crucial – not only for the world economy, but also for the position of crypto as an alternative financial system.
Source: https://newsbit.nl/arthur-hayes-bitcoin-koers-naar-250-000-als-fed-opnieuw-geld-print/
