U.S. Federal Reserve chair Jerome Powell grappled with the so-called debasement trade that boosted gold and the bitcoin price last year. Getty Images
By Billy Bambrough
Bitcoin and gold have split in recent months as gold soars and the bitcoin price plummets—with U.S. president Donald Trump’s tariff trade war again threatening to weigh on the U.S. dollar.The bitcoin price has fallen sharply overnight, dropping from almost $96,000 per bitcoin to just over $90,000 in a matter of minutes, while gold hit a fresh all-time high after Trump threatened to escalate tariffs on eight Nato allies unless Denmark agreed to a deal for Greenland.
Now, as Bank of America’s chief executive issues a stark $6 trillion crypto warning, traders are braced for this week’s inflation reading to be higher than previously expected—triggering warnings of “unprecedented stagflation.”</Economists at Barclays and Morgan Stanley have increased their December U.S. personal consumption expenditures price index (PCE) forecasts to 2.8% or 2.9%, while BNP Paribas’s Andy Schneider wrote in a note seen by Reuters that the reading will be “significantly” higher than last week’s 2.7% consumer price index (CPI).
The latest PCE data, the Federal Reserve’s preferred measure of inflation that excludes volatile food and energy prices, will be released on Thursday, potentially reviving fears of so-called stagflation that sees sluggish economic growth combined with soaring prices.“A coming collapse in the dollar will send consumer prices soaring,” Peter Schiff, a gold investor who is typically bearish on the dollar and critical of bitcoin, posted to X. “Get ready for unprecedented stagflation.”
Ahead of the latest inflation reading, the U.S. dollar has weakened as last year’s so-called debasement trade—which saw investors bet against the dollar and pile into scarce assets like bitcoin, gold, silver and copper alongside stocks—returned.
[…]
The Most Revolutionary Act 
Pingback: U.S. Dollar ‘Collapse’ Warning Issued As Markets Brace For Gold And Bitcoin Price Shocks | Worldtruth
Pingback: FAILING DOLLAR ATTRIBUTED TO MARKET TURMOIL CREATED BY TRUMP’S POLICIES | Worldtruth