Price fixations can lead to chaos. In a collapsing currency, it seems everyone becomes a millionaire eventually. If McTrumper takes the office again in January, he will bear the brunt of blame for what could be the largest inflation disaster in recent US history. Yes, this may push Bitcoin prices soaring past $1,000,000* USD*. But let’s be clear—this surge won’t benefit most people, especially those without crypto investments.
It’s easy to point fingers, but McTrumper isn’t the sole cause of the looming inflation crisis. If you insist on placing blame, you might want to look at former Federal Reserve Chairman Alan Greenspan. The root of the current predicament can be traced back to the post-Volcker era. But even Greenspan shares the blame with others like Janet Yellen; in truth, it’s the fiat currency system that’s to blame. There’s no longer any semblance of hard currency, leaving us with a monetary system that feels like it can accommodate anything.
What about the 2020s? They began with challenges. The crypto market, however, has weathered the storm beautifully. Still, for many, the decade seems bleak. Inflation is rampant, social tensions are rising, and geopolitical conflicts are escalating.
For those managing to shield themselves from the economic maelstrom and accumulate cryptos, the 2020s are looking a tad brighter. They might not fret over deteriorating purchasing power, but they can often find themselves lamenting the deals they missed. These are the types of problems that ironically become “first-world issues.”
However, 2025 promises to bring a shift in focus, particularly under a second McTrumper administration. The stance of the Trump camp appears to be pro-crypto, at least according to the narrative pushed by McTrumper during his campaign. His son, Eric Trump, stated, “I’ve been in crypto for a long time and so is my father… If we don’t do it as America, we’re going to be left behind.” This rhetoric positions America as a contender for the title of crypto capital of the globe.
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Yet, the reality is layered. How does the potential reappointment of Caroline Crenshaw to the SEC fit into the narrative? Currently, her presence raises questions amid an administration likely to support crypto-friendly policies. If there’s a strong anti-crypto force within the SEC, it could undermine the potential positive agenda of other appointments.
Let’s weigh the facts. The US remains the linchpin of the Western financial system, standing firmly alongside the big four currencies: the USD, EUR, GBP, and JPY. There’s a compelling rationale behind why cryptocurrencies—originally intended as mediums of exchange—have been largely relegated to asset class status. The recent surge in Ethereum ETF inflows serves as a case in point.
Everyone largely loves money, and while it’s easy to lay blame on figures like Greenspan and Yellen, the truth is that inflation originates from money creation. In late 2024, the US budget deficit surged past $600* billion USD* in just two months—equivalent to the annual GDP of countries like Sweden and Argentina. This massive outflow isn’t merely a post-crisis funding strategy; it has the potential to stoke inflation until the entire system teeters on collapse.
With Trump hinting at trade penalties against China, Beijing’s likely reaction would be government stimulus and currency devaluation. Both are surefire routes to inflation and a diminished purchasing power among nations that foolishly engage economically in Yuan.
The signs of conflict are becoming apparent. Wars can obliterate value. Unless one manufactures arms, war is typically detrimental to financial growth, particularly in countries embroiled in conflict. What’s worse is that armed conflicts demand substantial resources without yielding significant returns in the short to medium term.
Despite rumors suggesting McTrumper’s reluctance to engage in war, he hasn’t shied away from confrontation in the past. His previous actions concerning Iran illustrate a clear willingness to act aggressively. According to reports, Trump is deliberating on military options to curb Iran’s nuclear aspirations—this would break from established diplomatic norms.
Would war with Iran dramatically affect crypto prices? It’s plausible. The introduction of freshly minted currency could lead to soaring valuations. Similarly, an escalation involving Israel would likely follow suit, as regional skirmishes simmer.
Now, while enthusiasts dream of Bitcoin reaching the seven-figure mark, it won’t be an unbroken ascent. Bear markets can annihilate more than *70%* of Bitcoin’s peak price—suggesting a possible dip to around $35,000* in *2025. An eye-opening fact from Yellen’s tenure is that during her time, the US accumulated over $14* trillion* in new debt.
If you’ve made significant gains in crypto during 2024, a prudent step would be to consider taking some profits. Consumer spending is vital for a healthy economy, and perhaps the time will come in 2025 to repurchase tokens at potentially lower rates—if one is still around to make that choice.
