Bitcoin (BTC) Has Recovered This Month from a Sell-off That Had Threatened to Spiral into a Full Blown Price Crash

Bitcoin has recovered this month from a sell-off that had threatened to spiral into a full blown price crash—supported by the Federal Reserve quietly priming the bitcoin price and crypto market.

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President Biden's administration and the Fed have been focused on minimizing the fallout from the banking crisis and preventing a broader economic downturn, and this has involved keeping a close eye on the bitcoin and crypto market.

"The White House and Trump are scrambling to get ahead of a major bitcoin announcement that could change the entire crypto landscape!" reports Forbes’ CryptoAsset & Blockchain Advisor.

The bitcoin price has soared toward $100,000 per bitcoin, up from April lows of around $75,000, as it hurtles toward what bitcoin exchange-traded fund (ETF) giant BlackRock has called a “geopolitical fragmentation megaforce" shock.

Now, as a leak reveals growing establishment fears over U.S. president Donald Trump’s bitcoin and crypto plans, Wall Street giants that manage a combined $10 trillion on behalf of clients are predicted to "open for business" on bitcoin this year.

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At the start of the year, reports emerged that Trump was planning to create a new digital currency if he wins the 2024 presidential election.

The former president, a vocal supporter of bitcoin, had said he would bring back the dollar to its former glory and make America the number one financial power in the world.

"We're going to create a new currency, the best currency in the world, a cryptocurrency that will be used and accepted throughout the world, a currency that will be so strong and powerful that it will be like a new Bretton Woods moment," Trump said at the time.

His comments came after a report by the Financial Times said Trump was planning to launch his own cryptocurrency if he wins the 2024 presidential election.

The report, which cited three people with knowledge of the matter, said Trump had been discussing the possibility with advisors in recent months.

The move is part of Trump's broader economic agenda, which he has been rolling out in anticipation of a potential 2024 presidential bid.

The report also said that Trump's advisors had warned him about the potential for market manipulation and fraud if he launches his own cryptocurrency.

However, Trump is reportedly determined to go ahead with the plan, which he believes will be a major part of his campaign for a second term in the White House.

Trump's interest in cryptocurrency is well-documented. He has previously praised bitcoin and other cryptocurrencies, and he has expressed skepticism about the Federal Reserve.

In 2023, Trump slammed the Fed for "playing games" with interest rates and said that he would bring back the dollar to its former glory if he is elected president again.

"We have to get the rates down, and we have to get the dollar strong again. They're playing games with the rates, and they can't get it right," Trump said in an interview with Fox Business.

"We're going to make America the number one financial power in the world again, and we're going to bring back the dollar to its former glory."

Trump's comments come as the U.S. economy is showing signs of slowing growth. The Consumer Price Index (CPI), a key measure of inflation, rose 3.2% in July, lower than the 3.8% increase economists had expected.

The Fed's preferred measure of inflation, the Personal Consumption Expenditures (PCE) price index, rose 3.3% in June, in line with economists' estimates.

The slower-than-expected pace of inflation could give the Fed more leeway to hold off on further interest rate hikes.

The Fed has already raised interest rates by 5 percentage points since March 2022 in an effort to cool demand and bring inflation back to its 2% target.

At its last meeting in May, the Fed opted to pause the rate-hiking cycle but signaled that it could resume increases later this year if needed.

The central bank's next policy decision is due on 1 November.