The Fed’s Stagflation Crisis Intensifies as Bitcoin Nears $100K

$BTC Bitcoin’s Rally Defies Economic Turbulence

Bitcoin has surged toward the $100,000 milestone, climbing nearly 30% since April lows amid growing fears of U.S. stagflation and a weakening dollar. This resurgence positions BTC as one of 2024’s top-performing assets, outpacing traditional markets and signaling a potential paradigm shift in investor sentiment. $BTC

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#BinanceAlphaAlert 🔥 Stagflation Fears: The Fed’s Lose-Lose Scenario

GDP Contraction Q1 2024 data reveals a 0.3% annualized GDP decline, driven by record imports and slowing consumer spending.

Inflation Spike The Fed’s preferred inflation gauge, the PCE index, held steady at a 0.4% monthly rate in March, hitting its highest level since July 2023 (note: original text cited 2024, likely a typo).

Kobeissi Letter Warning “Rising inflation + weakening economy = stagflation. The Fed’s nightmare is here,” analysts declared, highlighting policymakers’ limited options ahead of next week’s rate decision.

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💼 Fed Rate Cuts: A Catalyst for Bitcoin?

With traders pricing in a 70% chance of a June rate cut (CME FedWatch Tool), liquidity could flood risk assets like Bitcoin.

MEXC’s Tracy Jin “Easing monetary policy historically fuels inflows into crypto. BTC is primed to benefit.”

Market Outlook The Fed’s potential pivot contrasts with its 2023 “higher for longer” stance, creating a bullish macro backdrop for BTC.

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🚀 Bitcoin’s Decoupling from Traditional Markets

Despite initial correlation with equities during Trump’s trade war escalation, BTC has since charted an independent trajectory:

’ David Hernandez “BTC shattered $90,000 post-Trump’s tariff announcement, showing resilience against traditional market headwinds. This decoupling could accelerate as tariffs bite.”

Nasdaq vs. BTC Bitcoin’s YTD gains dwarf tech stocks, reinforcing its role as a hedge against policy-driven volatility.

📊 Why Binance Square Traders Should Watch Closely $BTC