Trump's warning of an "impending battle" may raise expectations for the Federal Reserve's monetary easing, which is favorable for Bitcoin
According to Forbes, Trump recently warned that U.S. military actions against Iran could last more than five weeks, stating that "the real large-scale operations have not yet begun, and the big ones will come soon." The market believes that if the Middle East conflict becomes prolonged, it may drive up fiscal spending and increase the likelihood of the Federal Reserve easing monetary policy or even restarting large-scale liquidity injections, which could benefit cryptocurrencies like Bitcoin. Some aggressive predictions suggest that Bitcoin may hit highs of $200,000 to $500,000 within the year.
Additionally, a potential financial crisis driven by artificial intelligence could trigger impacts more severe than those of 2008, also favoring Bitcoin to reach new historical highs. Analysts point out that geopolitical risks, expectations of fiscal expansion, and shifts in monetary policy are becoming important macro variables for the current market's bets on Bitcoin's upward movement.
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