USA – A potential financial tremor is brewing in global crypto markets, with Bitcoin poised for what analysts are calling a “price earthquake” as the United States Federal Reserve appears to be nearing a major policy shift.
Bitcoin, already trading in the high six-figure range, has been experiencing renewed momentum amid investor optimism. Financial analysts warn that trillions of dollars locked in money-market funds and cash-based investment vehicles could surge into risk assets like cryptocurrency if the Federal Reserve moves toward interest rate cuts. The shift would free up liquidity that has remained dormant throughout the Fed’s prolonged tightening cycle.
Experts quoted in market reports have pointed to a massive “wall of cash,” estimated between $9.5 trillion and $25 trillion, that could re-enter markets once policy begins easing. If even a small percentage flows into Bitcoin and digital assets, the impact could dramatically amplify price movements.
Market strategists argue that the macroeconomic landscape is shifting rapidly. A softer Fed stance and increased liquidity typically drive capital toward higher-yielding or speculative investments, making Bitcoin a likely beneficiary. However, the scenario cuts both ways. If the Federal Reserve delays easing measures or signals a more hawkish stance than expected, Bitcoin could face downward pressure as investors retreat to safer grounds.
Bitcoin’s recent surge also signals the deepening linkage between traditional financial policy and cryptocurrency markets. Once considered isolated from global monetary dynamics, digital assets are now responding sharply to central-bank communication, signaling their maturation into mainstream investment territory.
Despite the bullish outlook, analysts urge caution. Crypto markets remain volatile, and their long-term trajectory hinges not only on macroeconomic shifts but also on regulatory environments, adoption trends, and broader investor sentiment.
This story has been reported by PakTribune. All rights reserved.