$BTC Bitcoin is racing toward $100,000, bouncing back nearly 30% from its April lows. The rally comes as confidence in the U.S. dollar weakens and fears of stagflation—high inflation mixed with a slowing economy—grow.
Recent data shows the U.S. economy shrank 0.3% last quarter, while inflation remains high. The Fed’s preferred inflation gauge (PCE) stayed flat in March but is still near its highest level in nearly a year. Analysts warn the Fed is trapped: cutting rates could fuel inflation, but keeping them high risks further economic damage.
Markets expect the Fed to hold rates steady next week but predict cuts by June, which could push Bitcoin even higher. Unlike stocks, Bitcoin has surged despite Trump’s trade wars, proving its resilience. Experts say it’s becoming a go-to hedge against economic uncertainty, with potential to keep outperforming traditional markets.
