Fed’s Policy U-Turn Could Send Bitcoin to Stratospheric Highs—Here’s Why

When the Federal Reserve flips the switch from rate hikes to cuts, crypto traders break out the champagne. History shows Bitcoin thrives in loose monetary policy—and Wall Street’s favorite inflation-fighting tool might just become crypto’s rocket fuel.

The trigger? A Fed pivot from hawkish to dovish stance typically floods markets with liquidity. That excess cash has to go somewhere—and Bitcoin’s finite supply makes it a prime candidate for the ’greater fool’ theory of investing (apologies to efficient market believers).

Just don’t tell the suits at JPMorgan—they’re still busy writing reports about how blockchain is ’only useful for fraud’ while quietly building their own tokenization platforms.

The latter is expected to inject around $138 billion into the financial system, boosting liquidity in an effort to support growth.

Tapiero has previously pointed to bleak consumer sentiment in the U.S., which he says now mirrors the pessimism of the 2008 financial crisis. In his view, a weakening dollar and falling rates could act as a catalyst for Bitcoin, as traditional fiat currencies continue to lose purchasing power.