Bitcoin Surges 100% to $100,000 as Trump Predicts Massive Crypto Investment

Bitcoin and other cryptocurrencies have shown resilience, rebounding after a significant escalation in the Israel-Iran conflict that initially sent prices plummeting due to fears of a "doomsday" scenario. The bitcoin price has surged back over $100,000 per bitcoin, bolstered by U.S. President Donald Trump's unexpected prediction of "massive" crypto investment.

As the market absorbs a potential game-changer from Congress expected to "unleash" trillions, bitcoin and crypto prices are poised for Federal Reserve chair Jerome Powell’s semi-annual testimony before lawmakers. This comes after Trump abruptly changed his stance on firing Powell. Powell has committed to keeping interest rates on hold, with some predicting that the bitcoin price and the broader crypto market could skyrocket once the Fed begins cutting rates.

David Morrison, a senior market analyst, highlighted that the key event today will be Powell’s testimony in Washington. Trump, via his Truth Social account, urged the Federal Reserve board to "activate," pressuring Powell to cut rates by "at least two to three points" and "save the U.S. more than $800 billion per year." Trump also expressed hope that Congress would "work this very dumb, hardheaded person over."

The Fed maintained interest rates last week after initiating a reduction cycle in September, which has been paused due to concerns that Trump’s global trade tariffs could reignite inflation. Ray Youssef, the chief executive of NoOnes, noted that all eyes are on Powell’s testimony and Friday’s PCE inflation print to gauge how close the Fed is to its anticipated policy pivot. The most optimistic scenario would involve confirmation of a dovish policy pivot or a significant de-escalation in global trade and geopolitical tensions, either of which could reignite interest in risk assets and drive bitcoin towards retesting its all-time high.

Expectations around an eventual Fed interest rate cut have been amplified by crypto traders and influencers on social media. One crypto trader posted on X with a hopeful prediction that "trillions" will flow into crypto once the Fed eventually cuts rates, now priced at a 22% chance in July, up from just 10% last week. Two Fed officials, Federal Reserve vice chair for supervision Michelle Bowman and Federal Reserve Bank of Chicago president Austan Goolsbee, have this week joined Fed governor Christopher Waller in suggesting it may be time to lower interest rates. Bowman stated that it is time to consider adjusting the policy rate, while Goolsbee noted that Trump’s trade tariffs have "not been what people feared." Powell has cited the expected increase in inflation due to Trump’s global trade tariffs as a reason to adopt a "wait-and-see" approach to adjusting interest rates. Waller has indicated that he does not expect Trump’s tariffs to drive inflation higher, suggesting that policymakers should consider lowering interest rates as early as July.