Bitcoin
Janet Yellen Issues Serious $34 Trillion Warning as Bitcoin Predicted to Hit $1 Million Price
Update 5/28 below. This post was originally published on May 27
Bitcoin
Bitcoin
increased in the last year thanks to an earthquake on Wall Street It is rising expectations of a conciliatory shift from the Federal Reserve.
The price of bitcoin is currently trading at around $70,000 per bitcoin, a nearly 400% increase from FTX’s post-collapse lows in late 2022.with the market primed for what will likely be a game-changing 2024 presidential election.
Now, after a legendary trader predicted the Federal Reserve would restart its money printer later this yearTreasury Secretary Janet Yellen has issued a sobering warning about the growing $34 trillion U.S. debt pile that some think could catapult the price of bitcoin to $1 million in the next 18 months.
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US Treasury Secretary Janet Yellen warned that higher interest rates from the Federal Reserve will… [+] increase the cost of servicing US debt – something some think could catapult the price of bitcoin upwards.
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“We raised the interest rate forecast,” Yellen counted Bloomberg on the sidelines of a Group of Seven meeting for finance ministers and central bank governors in Italy. “That makes a difference. It makes it a little more challenging to keep deficits and interest expenses under control.”
Interest payments on US debt are expected to reach $870 billion this year, according to a recent report. analysis by the Congressional Budget Office, after rising inflation led the Federal Reserve to raise interest rates at a pace never seen before, in the wake of the massive spending and money printing of the Covid era.
“There is a huge hole and a loss that needs to be realized,” said Jack Mallers, chief executive of payments app Bitcoin Strike. counted Anthony Pompliano, influencer and YouTuber. “That loss will come through currency devaluation. Asset prices will go up and what is the best asset and the best performing asset? What is the best money in the history of mankind? And so I think that has to be priced with precision .”
Mallers said he believed people “would be willing to pay $250,000 for a bitcoin” as a result of the weakening of the US dollar by the Fed’s money printing.
Update 5/28: Former US President and 2024 Republican hopeful Donald Trump has reportedly asked if bitcoin could be used to solve the US national debt problem, according to to reporter Colin Wu. David Bailey, chief executive of Bitcoin Magazine and cryptocurrency adviser to the Trump campaign, reportedly made the comments during a live broadcast Sunday on X.
“Bailey revealed that the first time he met Trump, he asked if bitcoin could do anything about the $35 trillion debt,” Wu posted. “Bailey responded that he had some ideas but was not prepared to discuss this issue during the first meeting.”
After the price of bitcoin rose late last week in response to positive legislative developments in Washington, Bailey posted to
Bailey is among a group of bitcoin and cryptocurrency entrepreneurs, developers and influencers who have supported Trump in recent weeks following his new support for crypto.
Trump, who recently began accepting donations for crypto campaigns after making millions of dollars selling crypto-based digital trading cards, said President Joe Biden wants bitcoin and crypto in the US to “die a slow, painful death.”
“I am very positive and open-minded about cryptocurrency companies and all things related to this new and burgeoning industry,” Trump said. posted to Truth Social, the X social media clone he launched in 2022.
“I think we’re still early in the history of bitcoin,” said Mallers, who was involved in El Salvador’s historic bitcoin adoption experiment in 2021. “I’ve publicly said that I think bitcoin reaches $250,000 to $1 million this cycle. So now I’m talking about the next 10 to 18 months.”
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The price of bitcoin has soared over the past year, surpassing its previous record high.
Forbes Digital Assets
Earlier this year, analysts at Bank of America warned that the US debt load is about to increase to add $1 trillion every 100 days.fueling a rise in the price of bitcoin.
“The US national debt is increasing by $1 trillion every 100 days,” wrote Michael Hartnett, chief strategist at Bank of America, in a note to clients. visa by CNBC, adding that “it’s no wonder ‘debt degradation’ trades have approached all-time highs, i.e. gold [at] $2,077/oz [and] Bitcoin [at] $67,734.”
Hartnett predicted that the newly created spot bitcoin exchange-traded funds (ETFs) that have taken Wall Street by storm over the past month are on track for a “boom year,” in part because of the collapse of the U.S. dollar.