Bitcoin has skyrocketed since its creation just over 15 years ago, largely due to a global financial crisis that has ballooned into a $365 trillion emergency. Subscribe now to CryptoCodex – a free crypto newsletter that will put you ahead of the market. The price of bitcoin has risen 300% from its 2023 lows, although it remains 30% below its 2025 high of $126,000 per bitcoin (although that could be about to change). As the market prepares for an AI “bank run” that could trigger financial chaos, US President Donald Trump has confirmed that the worst fears of many bitcoin holders could be about to come true. Sign up now to receive free CryptoCodex – a daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to speed and stay ahead of bitcoin prices and cryptocurrency market swings. ForbesA Wall Street Giant Just Pounced on Bitcoin: Issues Huge Price Prediction for 2027By Billy BambroughUSA President Donald Trump has presented a plan to reduce the United States’ $40 trillion debt with inflation, something that could skyrocket the price of bitcoin. Getty Images “You know, inflation, certain levels of inflation, will also pay off that debt very quickly,” Trump told Time in a wide-ranging interview when asked about concerns that the economy is getting too hot. Trump’s comments confirm a possible scenario suggested by JPMorgan analysts last year, something that could fuel the so-called downgrade trade that sees investors opt for “hard” assets like bitcoin and gold. “We could see a less straightforward path to reducing the US government’s debt burden,” the bank’s researchers wrote. “Policymakers could erode the independence of the Federal Reserve and effectively eliminate debt inflation by pushing for a stronger nominal growth environment characterized by higher inflation and, at least in the near term, lower real interest rates.” This week, the Fed’s preferred measure of inflation, the personal consumption expenditures (PCE) price index, showed that prices have risen 3.4% since this time last year, slowing from the previous month but well above the Fed’s 2% inflation target, as the latest US jobs report shows a sharp slowdown in hiring.”[The] “A frosty report shows that the labor market may not be as healthy as previous data might have suggested,” Nic Puckrin, a markets expert and former Goldman Sachs analyst, said in emailed comments. “Wage growth is more anemic than expected at 3%, while payrolls were well below expectations at 28,000, and August was also revised down. This is a downside for the Fed: It is forcing the central bank to choose between two evils. If it rises again, it risks tipping the unemployment scale at a time when Americans are already struggling with the cost of living crisis. If it continues, inflation could spiral out of control.” The market is pricing in a 70% chance that the Federal Reserve will vote to “hold” interest rates steady at its next meeting in late October, according to the CME tracker. The Federal Reserve has now seen inflation run above its target for five years and most policymakers don’t expect it to hit the target until 2029. Meanwhile, the U.S. debt pile has more than doubled over the past decade to $40 trillion, surpassing the Congressional Budget Office. (CBO) which had projected that overall borrowing would not reach the milestone this year. The rapid increase in American (and global) debt is due to heavy spending during the current and previous Trump and Biden administrations, along with higher interest payments as a result of the Federal Reserve’s rate increases, something that Trump has repeatedly called for sharp reduction. Trump, as well as his Treasury secretary, Scott Bessent, and the world’s first billionaire, Elon Musk, have said that technology-driven growth is the only way to escape the debt death spiral in which the United States is trapped. “I know I’m the best in the world… you can pay off the debt by other means. But the only thing you can do is pay it off through growth, and we’ve never had growth like this,” Trump said, referring to the artificial intelligence buildup that is currently propping up the economy through historically high spending. Subscribe now to CryptoCodex – a free cryptocurrency newsletter that will put you ahead of the market. Forbes Issued Dire AI ‘Bank Run’ Warning: Wall Street’s Nightmare Is Suddenly Coming True By Billy Bambrough Bitcoin has rallied in recent weeks, and traders are increasingly betting. Bitcoin price will continue to riseForbes Digital AssetsThe price of bitcoin soared last month as Bessent’s intervention in the bond market reignited the so-called debasement trade that has driven gold and bitcoin to all-time highs in recent years. “Bitcoin’s long-term narrative as a hedge against fiat currency debasement remains intact, but short-term valuations may still be directly pressured by policy rates and dollar liquidity,” Bitfire Research analysts wrote in an emailed note.
