Could the statements from Twitter's founder become a catalyst for Bitcoin to hit a million dollars?
Jack Dorsey, founder of Twitter and CEO of Block, recently warned investors that discretionary consumer spending is weakening, which could indirectly benefit Bitcoin (BTC).
Dorsey is often referred to as the 'Steve Jobs of the digital age.' The payment platform he founded, Cash App, was the first to offer the innovative service of buying Bitcoin with credit cards back in 2019, becoming a pioneer in the cryptocurrency payment field. This innovative model has drawn widespread attention in the market and is also the main reason for the recent sensation on Wall Street caused by Strategy.
Now, Square has been renamed to Block, and its stock price plummeted 20% in early May. Dorsey pointed out that consumers' economic strength is facing challenges, and although this is unfavorable for Block, it could become an important factor in pushing Bitcoin's price to exceed one million dollars.
After the release of Block's financial report, Dorsey analyzed consumer spending and noted that while spending on necessities remains resilient, overall consumption weakness is still the main reason for the performance falling short of expectations. This has led to the first quarterly contraction in the U.S. economy in three years. If this trend continues, it could trigger the Federal Reserve to cut interest rates to stimulate economic recovery.
Additionally, a CNBC survey found that the possibility of central banks cutting interest rates has increased amid economic uncertainty. Just as Dorsey predicted, this could once again drive up Bitcoin's price.
Looking back in history, when the Federal Reserve cut interest rates in 2007-2008, Bitcoin was just starting out. The subsequent low-interest-rate environment propelled its price to $20,000 in December 2017, followed by a crash due to rate hikes.
After the Federal Reserve cut interest rates in 2020, Bitcoin's price rebounded again, reaching $69,000 in November 2021. Today, even in the face of the Federal Reserve's refusal to cut rates, BTC's price remains stable above $100,000.
While history does not simply repeat itself, under the game of the Federal Reserve's policies and market sentiment, whether Bitcoin can continue to write its legend remains to be seen.
In summary, as market expectations continue to heat up, people cannot help but start to reassess whether Dorsey’s disruptive prophecy is gradually becoming a reality.
Do you agree with Dorsey's 'million-dollar Bitcoin' prophecy? If the Federal Reserve cuts rates, will BTC break its previous high or face new challenges?
