Bitcoin and crypto prices have stalled after soaring higher following Donald Trump’s U.S. presidential victory—with fears suddenly emerging the $4 trillion crypto bubble could be about to pop.
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The bitcoin price has surged to almost $110,000 per bitcoin, helped by Elon Musk’s leaked plans for crypto in the White House.
Now, as one legendary bitcoin trader warns of a looming “financial crisis,” Federal Reserve chair Jerome Powell has flung the door open for Wall Street to further adopt bitcoin and crypto.
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U.S. Federal Reserve chair Jerome Powell has told banks they are permitted to offer bitcoin and … [+]
“Banks are perfectly able to serve crypto customers as long as they can understand and service the risks,” Powell said at a press conference this week after the Fed paused its interest rate cutting cycle.
Wall Street banks “have to be pretty sure” their bitcoin and crypto activities are “safe and sound,” Powell added.
Wall Street giants, led by the world’s largest asset manager BlackRock, have leaned into bitcoin and crypto over the last year with a fleet of spot bitcoin exchange-traded funds (ETFs) helping to normalize bitcoin and crypto among the financial establishment.
Powell’s comments mark a major shift in sentiment under Trump from the previous Biden administration that was hostile toward crypto.
Under Biden, bitcoin and crypto companies complained of an unofficial policy to “debank” them, cutting off basic financial services and making it impossible to operate—which became known as “Operation Choke Point 2.0,” a reference to a previous U.S. government policy to cut off industries believed to be at high risk of fraud and money laundering.
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The bitcoin price has rocketed higher over the last year, topping $100,000 per bitcoin and driving … [+]
Trump’s adoption of bitcoin and crypto—starting with his non-fungible token (NFT) collections, growing to support for a U.S. bitcoin national stockpile and culminating with the launch of a controversial Trump-branded memecoin—has led to regulators and government agencies reversing their opposition to the technology.
Meanwhile, Trump has followed through with his campaign promise to put steep tariffs on goods coming into the U.S. from Canada, Mexico, and China, setting the stage for a trade war that could spread around the world.
Trump’s executive order will impose 25% tariffs on imports from Canada and Mexico, with a 10% tariff on Canadian energy and oil, and an additional 10% tariff on China, due to go into effect on Tuesday morning.
“Gold, silver, bitcoin may crash,” Robert Kiyosaki, investor and author of advice book Rich Dad Poor Dad, posted to X, pointing to Trump’s tariffs as the catalyst. “Good. Will buy more after prices crash. Real problem is debt, which will only get worse. Crashes mean assets are on sale. Time to get richer.”
