Fed’s Rate Games Stunt Bitcoin’s Ascent—But the Fix Is In

Central banks keep playing whack-a-mole with inflation, but Bitcoin’s code doesn’t bend to Powell’s printer.

The Fed’s Shell Game

Another hike, another pivot—while BTC’s 21M hard cap mocks fiat’s moving goalposts. Traders sweat the macros; hodlers just stack sats.

Wall Street’s Worst Nightmare

QE addicts hate this one trick: a decentralized asset that cuts out the middlemen (and their 2% inflation targets).

Wake up, Janet—your monetary policy looks as dated as a 2008 balance sheet. The orange coin laughs last.

$99,787 remains under pressure. According to economist Timothy Peterson, the Fed’s extensive contraction of the money supply may lead to a deflationary environment, slowing down spending and increasing risks. Peterson argues that the pressure from these policies significantly hinders Bitcoin’s ability to reach its true potential.

ContentsHow Fed’s Tight Policy Affects BitcoinIncreasing BNPL Usage: A Sign of Financial Trouble?

How Fed’s Tight Policy Affects Bitcoin

Peterson criticizes the Fed’s current monetary tightening in his X account post, claiming it reduces the money supply excessively. This contraction, he argues, increases deflation risk, lowers prices, and slows economic growth. As the economy shrinks faster than anticipated, both corporations and individuals face financial constraints.

Bitcoin and the cryptocurrency market are directly impacted by these policies. Peterson suggests that Bitcoin’s current price could be 30% to 50% below its actual potential. Investors believe easing monetary policies could protect the leading crypto from severe declines. Prolonged impacts might destabilize the cryptocurrency market, impairing innovation and institutional involvement.

Increasing BNPL Usage: A Sign of Financial Trouble?

Peterson highlights that over 25% of American consumers have turned to Buy Now, Pay Later (BNPL) credits for grocery shopping, up from 14% the previous year. This rising demand for credit reflects underlying economic difficulties.

Although the unemployment rate remains at 4.2%, Peterson underscores that borrowing and spending challenges are becoming widespread. He advises investors to carefully position themselves in the cryptocurrency market and exercise selectivity until the economic outlook becomes clearer.

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