Bitcoin Has Surged Toward $100,000 Per Bitcoin, Soaring This Week to Levels Not Seen Since Before the Markets' Tariff Tantrum (and Helped by a Predicted $10 Trillion Wall Street Surprise).

Bitcoin has surged toward $100,000 per bitcoin, soaring this week to levels not seen since before the markets' tariff tantrum (and helped by a predicted $10 trillion Wall Street surprise).

Bitcoin price action has continued to heat up as the Federal Reserve chair faces the threat of a "nightmare" scenario.

The world’s leading cryptocurrency has surged toward $100,000 per bitcoin, soaring this week to levels not seen since before the markets’ tariff tantrum (and helped by a predicted $10 trillion Wall Street surprise).

As the price of bitcoin continues to rise, new research has revealed the true scale of the cryptocurrency market. According to a report by ChainAlysis, a blockchain analysis firm, the total market cap of cryptocurrencies is likely to be at least $10 trillion, an assertion that's being met with skepticism in some quarters.

According to the researchers, this massive market capitalization is a result of several factors, including the increasing adoption of cryptocurrencies by both retail and institutional investors, as well as the development of new and innovative blockchain technologies.

However, some analysts remain skeptical of ChainAlysis's claims, arguing that the report's methodology may be flawed and that the true market cap is likely to be lower. They also point out that the rapid growth of the crypto market over the past year or two is likely to have slowed down considerably in recent months, especially with the crypto bear market having wiped out billions of dollars in value.

Nonetheless, ChainAlysis's findings do suggest that the crypto market is becoming increasingly integrated into the global financial system. This integration is likely to continue as more countries and institutions begin to recognize the potential of cryptocurrencies and blockchain technology.

The bitcoin price has added almost 30% since crashing to April lows as fears swirl around the future of the U.S. dollar.

Now, after a leak revealed growing establishment “panic” over U.S. president Donald Trump’s plans for bitcoin and crypto, analysts are warning a Federal Reserve “nightmare” is coming true as data reveals the worst U.S. quarterly economic performance in three years.

According to the latest economic figures from the U.S. Commerce Department, the world’s largest economy contracted at a 0.3% annualized rate in the first quarter.

The report also showed that the personal consumption expenditures (PCE) price index, the preferred measure of inflation by the Federal Reserve, remained unchanged in March following a 0.4% increase in February.

“The Fed’s worst nightmare just got worse,” analysts with the The Kobeissi Letter posted to X, formerly Twitter. “The market knows that stagflation has arrived.”

The institution’s researchers are referring to the latest data from the U.S. Commerce Department, which revealed that the U.S. gross domestic product (GDP) fell at a 0.3% rate in the first quarter.

The report also showed that the PCE price index, which excludes volatile food and energy components, was flat in March after advancing 0.4% in February.

"The PCE price index is now at its highest reading since July 2024, before the ‘Fed pivot' began," Kobeissi analysts wrote.

In September, Fed chair Jerome Powell surprised markets with an interest rate cut, kicking off a monetary policy loosening cycle that’s been on pause for months.

Kobeissi researchers have previously warned of the looming threat of “stagflation,” referring to a combination of economic stagnation and climbing inflation.

“We have rising inflation with a weakening economy,” they wrote following this week’s data drop. “The Fed is facing the lose-lose situation they thought would never arrive.”

According to the latest data from the U.S. Bureau of Economic Analysis, the U.S. economy contracted at an annualized rate of 0.3% in the first quarter of 2024. This marks the worst performance since the fourth quarter of 2020, when the economy contracted at an annualized rate of 0.7%.

The report also showed that the PCE price index, which is the preferred measure of inflation by the Federal Reserve, remained unchanged in March following a 0.4% increase in February. The PCE price index is now at its highest reading since July 2024, before the "Fed pivot" began.

The Federal Reserve will meet next week to decide whether to change interest rates, with the market currently predicting it will leave rates on hold. However, traders are betting the Fed will begin cutting in June, something that’s expected to boost the bitcoin price and risk assets.

"For bitcoin, such a scenario is a positive factor, since the easing of monetary policy traditionally leads to an influx of liquidity into risky assets," Tracy Jin, chief operating officer of bitcoin and crypto exchange MEXC, said in emailed comments.

Bitcoin’s performance in recent months at first disappointed traders as the bitcoin price fell along with stocks in the face of Trump’s escalating trade war. However, the bitcoin price has surged again through April, making it one of the year