Bitcoin and crypto prices increased last week. This was also helped by rising expectations that China would deliver a massive stimulus bombshell.

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Bitcoin price reached its all-time high just below $74,000. Tesla billionaire Elon Musk declares “financial emergency” that some think will send bitcoin price higher.

Now, Federal Reserve grapples with a “nightmare” scenarioLarry Fink, CEO of BlackRock, the world’s largest asset manager, warned that he did not think the Fed would cut interest rates as quickly as the markets expected.

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“We’re not going to see interest rates as low as people are predicting,” said Fink, who oversees BlackRock’s $10 trillion in assets. during A. Bloomberg The panel is part of the Future Investment Initiative, Saudi Arabia’s flagship annual investment conference.

Fink predicted only one Fed rate cut before 2025, compared to the market’s expectation of two.

“It’s fair to say we’re going to cut at least 25 basis points, but that said, I believe we have greater built-in inflation than we’ve ever seen in the world,” Fink said. he said. he warned.

Last month, the Fed surprised investors with a 50 basis point cut in interest rates, kicking off a cycle of cuts after interest rates rose at a historic pace as quarantine-induced inflation threatened to spiral out of control.

Expectations that interest rates will fall sharply this year have led to a surge in Bitcoin prices through 2024, as Bitcoin and the broader crypto market recover along with stock markets.

High interest rates raise payments on $35 trillion US debt pile with Tesla billionaire Elon Musk last week “Debt interest payments account for 23% of all federal tax revenues,” warns and declaring the situation a “fiscal emergency.”

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Meanwhile, SkyBridge Capital founder Anthony Scaramucci predicted that the Fed will allow inflation to run hotter than it has been before in order to survive the “massive debt crisis” and that the price of Bitcoin will rise as a result.

“There are a lot of people who think that the United States is about to go into this massive debt crisis. And I believe that we will solve it and prevent it from happening,” Scaramucci said. said the Reuters Global Markets Forum.

Scaramucci said he expects the Bitcoin price to reach $170,000 by mid-2026, which would give Bitcoin a market cap of around $3.3 trillion due to Bitcoin’s “fixed limited supply and, I think, very high demand.”

That demand has grown even more this year with the long-awaited arrival of a fleet of spot bitcoin exchange-traded funds (ETFs) on Wall Street, led by BlackRock’s bitcoin fund.

On Wednesday, BlackRock’s Bitcoin ETF saw net inflows of $872 million; This marked the fund’s largest inflow since its launch in January, surpassing its previous record high on March 12.

“The recent increase in BlackRock’s IBIT inflows is due to several fundamental factors, including the global shift by central banks to lower interest rates, which increases liquidity and makes capital more accessible to investors,” said BTCMarkets crypto analyst Rachael Lucas. said Block.