A Fed ‘Nightmare’ Is Predicted To Spark A Bitcoin Price ‘Tipping Point’

   Share to Facebook Share to Twitter Share to Linkedin has surged this week as the market is hit by a China "tsunami" and former U.S. president Donald Trump teases "big news." Unlock over $3,000 in perks including unparalleled access to a community of top Web3 entrepreneurs, creators, and investors, providing you with premium networking, priority access to global events, Free access to Forbes.com and our Forbes CryptoAsset & Blockchain Advisor newsletter. Apply now! The bitcoin price has returned to near its all-time high of almost $70,000 per bitcoin after BlackRock chief executive Larry Fink revealed his huge plan for bitcoin and crypto. Now, as MicroStrategy's Michael Saylor unveils his bitcoin "endgame," billionaire investor Stanley Druckenmiller has predicted a market "melt up" as the bitcoin price approaches "a tipping point." Sign up now for the free CryptoCodex—A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin and crypto market bull run Forbes‘Digitizing The Dollar’—BlackRock CEO Reveals His Radical Plan For AI-Powered Crypto That’s Predicted To Blow Up The Price Of Bitcoin And EthereumBy Billy Bambrough MORE FOR YOU Cybercrime Agency Issues New 2FA Warning For Gmail, Outlook, Facebook And X Users Today’s NYT Mini Crossword Answers For Thursday, October 17 Comet Tonight: See It Thursday With Biggest ‘Supermoon’ Of 2024 Federal Reserve chair Jerome Powell has cut interest rates and helped the bitcoin price return to ... [+] near its all-time high. Getty Images "If [the Fed] is wrong .... and has to tighten again, it would be nightmare for markets and maybe for the independence of the Fed," Druckenmiller, who said the bitcoin price and crypto markets have gone "crazy" along with broader markets this year, told Bloomberg. Last month, Fed chair Jerome Powell surprised markets with a 50 basis point cut to interest rates, the first cut in the post-Covid era after lockdowns and unprecedented stimulus measures sent inflation spiraling out of control. "When you're easing into a "melt up" in financial markets ... I don't really understand the rush of a 50 basis point interest rate cut," Druckenmiller said. Gold has rocketed along with the bitcoin price this year, soaring 30% as traders bet the Fed's warn on inflation isn't yet won. "There is a bubbling sense that the absolute conviction of inflation returning to 2% might be more faith than fact," TS Lombard economist Steven Blitz told Bloomberg. Earlier this month, BlackRock's chief executive Larry Fink has warned he thinks the market needs to temper its expectations of Fed interest rate cuts. "The amount of easing that’s in the forward curve is crazy," Fink, who's led BlackRock to become the world's largest asset manager looking after $10 trillion on behalf of clients, told Bloomberg on the sidelines of a Berlin conference. "I do believe there’s room for easing more, but not as much as the forward curve would indicate." Traders are now weighing whether the bitcoin price may crash back before resuming its surge higher. "While bitcoin’s price is supported by key bullish factors, including well-defended dips and top traders taking long leverage, the broader market is rife with warning signals," Shubh Varma, the chief executive of Hyblock Capital, said in emailed comments. "With retail longs approaching a tipping point ... the prudent move may be to expect a final dip before the market attempts another leg up." Follow me on Twitter. Billy Bambrough Editorial Standards Forbes Accolades