Fed Governor Waller Proposes That Inflation is Temporary, Potentially Boosting Bitcoin Over $100K
Fed Governor Waller was direct this week, linking possible tariff consequences to more significant rate reductions. He cautioned that the economic repercussions from such actions might pull production and jobs into a downturn.
If the situation escalates, Waller made it clear he would price floor swift policy rate cuts more aggressively than previously.
This comes as Bitcoin surges past $85,000, overcoming last week’s drop to $74,500. The 6.79% weekly rise has traders excited, showcasing its most rapid increase since January 2025.
Fed Governor Waller: US Treasury Available volume Fuels Buying Momentum
Another element driving Bitcoin’s resurgence is the infusion of over $500 billion in liquidity by the US Treasury since February. The Treasury’s capital infusion, aimed at supporting government operations amid debt ceiling talks, has increased net liquidity in financial markets to $6.3 trillion.
Analysts at 99Bitcoin forecast that if negotiations over the debt ceiling extend into August, available volume could rise even further, potentially hitting $6.6 trillion. This cash influx enhances risk assets like BTC, with financial analyst Lyn Alden referring to it as a “Global Market fluidity Barometer.”
Declining Treasury yields are also supporting Bitcoin’s price breakout. Decreasing yields, along with tariff exemptions on essential imports such as semiconductors, have diminished the attractiveness of fixed-income investments, driving investors towards alternatives like BTC.
Technical Analysis Indicates a Optimistic Trajectory
Bitcoin remains above $84,200, holding onto crucial base level while facing resistance just above $85,500. Break that barrier, analysts suggest, and a rapid ascent to $87,500 or even $90,000 could unfold.
In the long term, traders like Titan of Crypto are projecting ambitious figures, with $137,000 anticipated by mid-2025, driven by bullish pennants adorning the charts.
The Path Forward
Bitcoin’s surge has been striking, yet the crypto market appears cautious. Futures premiums and options indicate traders are playing it safe, not yet ready to celebrate a solid breakthrough past $90,000. Meanwhile, corporate engagement and macroeconomic benefits, such as Treasury available volume, are positioning the crypto market for sustained growth.
Breaking through established price ceiling is the current challenge. If that barrier is shattered, BTC could establish itself as a preferred asset for both large corporations and committed investors. The setup for 2025 is already in motion.
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Key Takeaways
- Fed Governor Waller was straightforward this week, connecting potential tariff repercussions to more pronounced rate cuts. He cautioned that the economic aftermath from such actions could lead to devastation.
- Another key element driving Bitcoin’s recovery is the influx of over $500 billion in liquidity by the US Treasury since February.
- The real challenge now is to breach the entrenched barrier level. Smash through the $100k ceiling once more.
The post Fed Governor Waller Indicates Inflation is Temporary, May Propel Bitcoin Above $100K appeared first on 99Bitcoins.
