Bitcoin’s rally to $84K comes despite aggressive Fed rhetoric, showcasing how conflicting policy signals are driving crypto demand:
Policy Crosscurrents:
• Fed’s “higher for longer” stance crushing bonds (10Y yields at 4.9%)
• Trump’s pro-crypto pivot including:
- Promise to pardon Silk Road’s Ross Ulbricht
- Opposition to CBDCs
- Tariff-driven dollar weakness
“Investors see Bitcoin as a policy chaos hedge,” said CoinShares’ Meltem Demirors. Regulatory developments fueling the rally:
✓ FIT21 bill passage creating clear crypto rules
✓ SEC losing 3/3 crypto enforcement cases
✓ MiCA implementation boosting EU institutional adoption
The political divide is stark:
→ Biden campaigns with anti-crypto Wall Street donors
→ Trump NFT sales fund pro-Bitcoin ads in swing states
→ RFK Jr. proposes Bitcoin backing for Treasury bonds
