Sign up now for <\/strong>CryptoCodex<\/strong><\/a>\u2014A free crypto newsletter that will get you ahead of the market<\/strong><\/p>\n The bitcoin price is up almost double from this time last year, with bitcoin braced for $20 million to $28 million of daily buying pressure that some think could create the new \u201cRockefellers or Rothschilds.\u201d<\/a><\/p>\n Now, as a surprising celebrity suddenly jumps on the crypto bandwagon<\/a>, the former chief technology officer at bitcoin and crypto exchange Coinbase has predicted bitcoin will “end the Fed.”<\/p>\n Sign up now for the free <\/strong>CryptoCodex<\/strong><\/a>\u2014A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin and crypto market bull run<\/strong><\/p>\n ForbesDonald Trump Has A Secret Weapon In His War On The FedBy Billy Bambrough<\/a> Jerome Powell, chair of the Federal Reserve, is battling stubborn inflation that’s pushed the bitcoin price higher.<\/p>\n Getty Images<\/p>\n “When bitcoin wins, it ends the Fed,” Balaji Srinivasan, the author of The Network State who left Coinbase in 2019, said<\/a> during a speech at Bitcoin Asia. \u201cAnd what does that mean? When bitcoin wins, the Fed loses control.\u201d<\/p>\n Srinivasan, who made headlines<\/a> with his incorrect $1 million bitcoin price prediction in 2023, said bitcoin\u2019s fixed supply of 21 million will see the Fed\u2019s \u201cgyrating rates\u201d get replaced by \u201calgorithmic” monetary policy government debt continues to surge.<\/p>\n \u201cThis is only going to get worse as inflation picks up,” Srinivasan said, referring to the U.S. debt pile that\u2019s ballooned to $37 trillion this year following out-of-control Covid-era spending, feared to be spiralling into a debt \u201cdoom loop” as higher interest rates force the government to print money to service the debt<\/a>.<\/p>\n 09\/03 update: Hedge fund billionaire Ray Dalio, the founder of Bridgewater Associates, has warned the spiraling U.S. debt pile is \u201clikely cause a debt-induced heart attack in the relatively near future\u2014I\u2019d say three years, give or take a year or two.\u201d<\/p>\n Dalio, posting<\/a> responses to Financial Times questions on X after claiming its reporting<\/a> had mischaracterized his position, pointed to the $1 trillion a year interest on the $37 trillion debt and $9 trillion needed to roll over the debt as squeezing “out other spending. The more that happens, the closer the country is to a debt-induced economic heart attack.\u201d<\/p>\n According to Dalio,”the Federal government will spend about $7 trillion and take in only about $5 trillion, so it will have to sell an additional roughly $2 trillion in debt,” in addition to the $1 trillion it has to sell to pay interest plus the $9 trillion it has to raise to roll over the debt.<\/p>\n The Federal Reserve, which is under attack from U.S. president Donald Trump\u2019s White House due to Fed chair Jerome Powell\u2019s refusal to reduce interest rates, is widely expected to restart its interest rate cutting cycle this month\u2014risking the Fed allowing inflation to \u201crun hot\u201d after prices have begun to rise again over the summer.<\/p>\n “[This] would lead bonds and the dollar to go down in value and, if not rectified, would lead to them being an ineffective storehold of wealth and the breaking down of the monetary order as we know it,” Dalio said.<\/p>\n Dalio went on to predict the bitcoin price and other cryptocurrencies would likely be a beneficiary of the Fed\u2019s weakening of the U.S. dollar.<\/p>\n \u201cCrypto is now an alternative currency that has its supply limited, so, all things being equal, if the supply of dollar money rises and\/or the demand for it falls, that would likely make crypto an attractive alternative currency,” Dalio wrote.<\/p>\n \u201cI think that most fiat currencies, especially those with large debts, will have problems being effective storeholds of wealth and will go down in value relative to hard currencies. This is what happened in the 1930 to 1940 period and the 1970 to 1980 period.\u201d<\/p>\n Meanwhile, the looming debt crisis has been seized on by bitcoin price bulls who are predicting it will turbo-charge bitcoin.<\/p>\n \u201cThe $200 trillion debt spiral means the U.S. can\u2019t stop printing,\u201d Max Keiser, a financial contrarian and bitcoin supporter who has advised El Salvador on its bitcoin strategy, posted<\/a> to X.<\/p>\n Keiser predicted, \u201cthe gap between have-nots & have-yachts (assets) will grow rapidly,\u201d leading to bitcoin exploding to a $2 million price.<\/p>\n The Fed and its chair Jerome Powell have been sharply criticised by U.S. president Donald Trump this year, with Powell refusing to cave to Trump\u2019s demands for lower interest rates.<\/p>\n The row between Trump and the Fed has been brewing for years, with accusations of political bias beginning when Powell incorrectly called post-Covid lockdown inflation \u201ctransitory,\u201d holding back from increasing interest rates in response to rising prices.<\/p>\n The battle was turbo-charged when Powell surprised markets with a 50 basis point inflation hike in September last year, seen by some as a gift to Trump\u2019s Democratic Party election rival Kamala Harris.<\/p>\n Inflation fears have continued to chip away at confidence in the U.S. dollar, with this month\u2019s Federal Reserve interest rate decision expected to see it cut by 25 basis points.<\/p>\n \u201cBitcoin is now sitting on major on-chain support and a key technical level\u2014but with this being one of the most pivotal weeks of the year for crypto, the stakes could not be higher,\u201d analysts with 10x Research, led by Markus Thielen, wrote in an emailed note.<\/p>\n On Wednesday the Fed\u2019s Beige Book will give insight into U.S. economic fundamentals while Friday\u2019s August jobs report is expected to show an increase of 75,000, according to a Reuters poll, and will be closely watched for its impact on Federal Reserve officials\u2019 thinking ahead of their September interest rate meeting.<\/p>\n Sign up now for <\/strong>CryptoCodex<\/strong><\/a>\u2014A free, daily newsletter for the crypto-curious<\/strong><\/p>\n![\"bitcoin,](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/09\/1756949414_394_960x0.jpg\")
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