Bitcoin News Today: Bitcoin Surges, Global Stocks Rise as Analysts Warn of Bubbles from Trump Policies and Fed Uncertainty

Bitcoin’s meteoric rise this year, coupled with record highs in global stock markets, has ignited warnings from analysts about looming bubbles and potential collapses. The cryptocurrency surged past $123,000 following the re-election of U.S. President Donald Trump, while equity indices continued to hit milestones despite underlying fragilities. However, recent volatility has triggered fears of a synchronized correction, with traders and experts debating the risk of a “sell-off” driven by regulatory shifts, trade policies, or algorithmic market failures [1].

The Forbs article highlights a growing consensus that Bitcoin’s price action—marked by sharp swings and a 72-hour range exceeding $10,000—is a red flag. FxPro’s chief market analyst, Alex Kuptsikevich, noted that the crypto market lost nearly $100 billion in value within 24 hours, with double-digit declines in major coins deepening concerns about sustainability [1]. Meanwhile, Piper Sandler analysts linked the potential downturn to Trump’s impending trade tariffs and uncertainty around the Federal Reserve’s interest rate trajectory, warning that high-beta stocks and Bitcoin could face a coordinated selloff [1]. Michael Kantrowitz, the firm’s chief investment strategist, urged investors to lock in profits from assets that had surged post-April, particularly those with weak fundamentals and inflated valuations.

The debate over systemic risks has drawn high-profile voices. Robert Kiyosaki, author of Rich Dad, Poor Dad, labeled the current market environment a “bust waiting to happen,” arguing that interconnected bubbles in equities, gold, and Bitcoin could all implode simultaneously [1]. Yet, some analysts remain skeptical. Mati Greenspan of Quantum Economics dismissed Kiyosaki’s dire predictions, pointing to modest profit-taking, a lack of panic in options markets, and manageable open interest as signs of market fatigue rather than immediate collapse. Greenspan noted that such “whatever energy” often precedes unexpected market moves but cautioned against overreacting to hype [1].

The interplay between Bitcoin and traditional assets has added complexity. Kantrowitz emphasized that Bitcoin’s “very tight directional correlation” with equities means a broad risk-off environment—triggered by macroeconomic shocks or algorithmic glitches—could see both markets decline in tandem [1]. The Cboe Volatility Index (VIX), a key indicator of investor sentiment, has risen in recent sessions, reflecting heightened hedging activity. While Bloomberg analysts have previously critiqued the VIX as a flawed measure of actual market stress [2], its upward trend has reinforced perceptions of caution.

Despite the alarm, market dynamics remain contradictory. While Bitcoin’s volatility has drawn scrutiny, smaller cryptocurrencies like Dogecoin have shown little movement, and niche tokens—such as a stablecoin recently surging 337%—reflect fragmented investor priorities. This divergence suggests that a broad collapse may be overstated, though the focus on Bitcoin and equities persists as focal points of risk [1].

Retail and institutional investors are adopting divergent strategies. Some are reducing leveraged positions and hedging against downturns, while others see the volatility as a buying opportunity. The lack of a unified narrative underscores the uncertainty: is this a temporary recalibration of risk premiums, or the early stages of a systemic unwind? With Trump’s trade policies, the Fed’s actions, and the “infinite money glitch” theory fueling speculation, the coming weeks will test the resilience of both markets.

Sources:

[1] [Forbes Digital Assets: Bubbles Are About To Start Busting](https://www.forbes.com/sites/digital-assets/2025/07/24/bubbles-are-about-to-start-busting-huge-price-swings-spark-fear-of-a-stock-market-and-bitcoin-crash/)

[2] [Bloomberg News: The Stock Market's Fear Gauge Is Misunderstood](https://www.advisorperspectives.com/firm/bloomberg-news)