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Bitcoin Skyrockets: Is a $200K Moon-landing on the Fed’s Rocket Fuel Imminent?

BBG News
  • Bitcoin, that unruly magician of the markets, soared to $99K post-Fed rate mumblings, staging a Houdini-like escape from April’s dismal basement with a bedazzling 32% resurrection.🪄
  • One self-assured oracle—excuse me, “market expert”—now sees BTC in wild flight to $200K, provided it conquers that irksome $100K hurdle.🔮

Ladies and gentlemen, on the fateful morning of May 8th—while most honest folk were trying to remember their passwords—Bitcoin [BTC] catapulted itself to $99K, clutching at the kind of redemption arc that would make Dostoevsky jealous. This little leap? Oh, just a 32% hop since April’s doldrums. Coincidence? Not if Jerome Powell’s caffeine intake has anything to say about it.

The magic moment materialized mere hours after the Federal Reserve decided to practice the ancient art of inaction—rates remained untouched and, much like bureaucratic paperwork, exactly where we left them.

According to the Feds, the labor market is “solid” (read: nobody’s been caught napping—yet) but inflation, amusingly described as “sticky,” tenaciously clings to our pockets like a street magician to his last coin trick.

“The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated.”

Suppose BTC stormed past $100K—then what? 🎉

Now the tea leaves say we’ll see several Fed rate cuts by Q3 2025; the kind of fiscal softening that could send risk-on appetites into a frenzy—and Bitcoin to the moon. Enter Matt Mena, that prophet from 21Shares, whose correspondence to AMBcrypto had all the drama of a Tolstoy novel:

“A clean break above $100,000 could trigger a retest of the all-time high at $108,500 – and if adoption accelerates on both domestic and global fronts, Bitcoin could push beyond $200,000 by year-end.”

What else spices up this cosmic run? According to Mena, a good old U.S.–China trade soap opera, and nation-states suddenly deciding they’d rather hoard BTC than gold bullion. One can only imagine some finance minister somewhere, looking disdainfully at his gold bar—“Why aren’t you pumping my ETF?”

In a delicious twist, BlackRock’s Bitcoin ETF has already left the most fashionable gold ETF weeping in the tracks, as IBIT flows do the cha-cha right past it in the year-to-date quota. Oh, how the mighty have tumbled—somewhere, Midas is quietly sobbing.

Turns out, Bitcoin rallies even harder when the cost of borrowing money resembles a Black Friday giveaway. Meanwhile, U.S. investors have been Bitcoin’s personal fan club lately; the Coinbase Premium Index has been perkier than a fresh cup of Moscow tea the last fortnight.

Just this week, U.S. spot BTC ETFs snagged $2 billion worth of inflows. Year-to-date? Try $5B, as if the population collectively discovered a new cure for boredom.

Examine the 3-month liquidation heatmap, and one sees BTC’s path marked by two glittering prize spots at $98K and $100K—sparkling like spilled vodka at a novelist’s banquet. Onwards, $106K is the Siren Song, but don’t forget the treacherous shoals below: $93K and $83K lurk slyly as backup dance floors, should things go awry.

If polite society is lucky, even more U.S.-China handshakes could keep this opera singing in the short term. And for the midsummer dreamers? Matt Mena maintains a rosier view—so long as the Fed unleashes its rate cuts in Q3 2025!

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2025-05-08 15:22

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