Bitcoin BTC 0.0%-alongside other major cryptocurrencies ethereum and XRP XRP 0.0%-have lost momentum after surging into 2023.
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The bitcoin price has lost around 60% since peaking at almost $70,000 per bitcoin in late 2021, wiping around $2 trillion from the price of ethereum, XRP and the rest of the crypto market-even as a BlackRock insider primes the market for a $17.7 trillion earthquake.
Now, as the Federal Reserve grapples with a $33 trillion U.S. "Debt death spiral," Jefferies' analysts have warned the Fed will be forced to restart its money printer-potentially collapsing the U.S. dollar and fueling a bitcoin price boom to rival gold.
"G7 central banks, including most importantly the Federal Reserve, will not be able to exit from unconventional monetary policy in a benign manner and will ultimately remain committed to ongoing central bank balance-sheet expansion in one form or another," Christopher Wood, global head of equity strategy at Jefferies, wrote in a note to clients seen by CNBC, calling bitcoin and gold "Critical hedges" against the return of inflation.
As well as reducing its balance sheet, the Fed has been hiking interest rates at a historic clip as it struggles to bring soaring inflation under control, creating what some fear could become a counter-intuitive "Death spiral" for the U.S. dollar that ultimately pushes up the bitcoin price.
In June, BlackRock sparked a Wall Street rush toward bitcoin and crypto, with its legendary chief executive Larry Fink flipping bullish on bitcoin after years of skepticism.
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