Bitcoin Braced For A Surprise $22 Trillion Fed Price Earthquake
Front-run Donald Trump, the White House and Wall Street by subscribing now to Forbes' CryptoAsset & Blockchain Advisor where you can "uncover blockchain blockbusters poised for 1,000% plus gains!"
The bitcoin price is up almost double from July last year, with predictions of 'trillions and trillions' of dollars still on the sidelines helping to fuel sky-high bitcoin price bets.
Now, as a "huge" BlackRock crypto market bombshell suddenly appears on the horizon, the U.S. M2 money supply has hit a record $22 trillion—named by analysts as a potential catalyst for a bitcoin price breakout.
Sign up now for the free CryptoCodex—A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin and crypto market bull run
U.S. Federal Reserve chair Jerome Powell has said interest rates would have come down this year if ... More not for Donald Trump's global trade tariffs—something that some think could further boost the bitcoin price.
"As M2 money supply begins to rise again, history suggests that a portion of this liquidity will flow into bitcoin and other digital assets," Matt Mena, crypto research strategist at 21Shares, said in emailed comments.
Historically, the bitcoin price has tracked the M2 money supply, which is the Federal Reserve's estimate of liquid assets, including cash, money deposited in checking accounts, savings accounts, and other short-term saving vehicles such as money market funds.
"If bitcoin continues to follow money supply growth, we could see $150,000 per coin before year end," Anthony 'Pomp' Pompliano, a crypto influencer who's set to lead a new bitcoin acquisition company, wrote in an emailed note.
The increase in the M2 money supply comes as Fed chair Jerome Powell continues to argue the case for keeping interest rates on hold.
Sign up now for CryptoCodex—A free, daily newsletter for the crypto-curious
The bitcoin price has shot higher over the last few years, climbing alongside the U.S. M2 money ... More supply.
'In effect we went on hold when we saw the size of the tariffs," Powell said this week during a conference panel discussion, it was reported by The Guardian newspaper, referring to Trump's Liberation Day of trade tariffs that sent shockwaves through the global economy.
"Essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs. We didn't overreact, in fact we didn't react at all. We're simply taking some time.'
Last month, the Fed kept interest rates on hold again after kicking of a reduction cycle in September, despite a growing number of Fed officials arguing for rate cuts.
'It's clear that the Fed expects inflation to continue above target,' David Morrison, senior market analyst at Trade Nation, said in emailed comments. 'That being the case, it sounds as if the Fed will only cut rates if the U.S. employment situation deteriorates significantly.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
39 minutes ago
- Yahoo
TETRA Technologies, Inc.'s (NYSE:TTI) Stock Is Going Strong: Is the Market Following Fundamentals?
TETRA Technologies' (NYSE:TTI) stock is up by a considerable 36% over the past three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. In this article, we decided to focus on TETRA Technologies' ROE. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for TETRA Technologies is: 43% = US$117m ÷ US$272m (Based on the trailing twelve months to March 2025). The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.43 in profit. View our latest analysis for TETRA Technologies We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. To begin with, TETRA Technologies has a pretty high ROE which is interesting. Second, a comparison with the average ROE reported by the industry of 12% also doesn't go unnoticed by us. So, the substantial 80% net income growth seen by TETRA Technologies over the past five years isn't overly surprising. Next, on comparing with the industry net income growth, we found that TETRA Technologies' growth is quite high when compared to the industry average growth of 58% in the same period, which is great to see. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about TETRA Technologies''s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Given that TETRA Technologies doesn't pay any regular dividends to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business. Overall, we are quite pleased with TETRA Technologies' performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $359.72 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
San Francisco Chronicle
43 minutes ago
- San Francisco Chronicle
Trump branded, browbeat and prevailed. But his big bill may come at a political cost
WASHINGTON (AP) — Barack Obama had the Affordable Care Act. Joe Biden had the Inflation Reduction Act. President Donald Trump will have the tax cuts. All were hailed in the moment and became ripe political targets in campaigns that followed. In Trump's case, the tax cuts may almost become lost in the debates over other parts of the multitrillion-dollar bill that Democrats say will force poor Americans off their health care and overturn a decade or more of energy policy. Through persuasion and browbeating, Trump forced nearly all congressional Republicans to line up behind his marquee legislation despite some of its unpalatable pieces. He followed the playbook that had marked his life in business before politics. He focused on branding — labeling the legislation the 'One Big, Beautiful Bill' — then relentlessly pushed to strong-arm it through Congress, solely on the votes of Republicans. But Trump's victory will soon be tested during the 2026 midterm elections where Democrats plan to run on a durable theme: that the Republican president favors the rich on tax cuts over poorer people who will lose their health care. Trump and Republicans argue that those who deserve coverage will retain it. Nonpartisan analysts, however, project significant increases to the number of uninsured. Meanwhile, the GOP's promise that the bill will turbocharge the economy will be tested at a time of uncertainty and trade turmoil. Trump has tried to counter the notion of favoring the rich with provisions that would reduce the taxes for people paid in tips and receiving overtime pay, two kinds of earners who represent a small share of the workforce. Extending the tax cuts from Trump's first term that were set to expire if Congress failed to act meant he could also argue that millions of people would avoid a tax increase. To enact that and other expensive priorities, Republicans made steep cuts to Medicaid that ultimately belied Trump's promise that those on government entitlement programs 'won't be affected.' 'The biggest thing is, he's answering the call of the forgotten people. That's why his No. 1 request was the no tax on tips, the no tax on overtime, tax relief for seniors,' said Rep. Jason Smith, R-Mo., chairman of the tax-writing House Ways and Means Committee. 'I think that's going to be the big impact.' Hard to reap the rewards Presidents have seen their signature legislative accomplishments unraveled by their successors or become a significant political liability for their party in subsequent elections. A central case for Biden's reelection was that the public would reward the Democrat for his legislative accomplishments. That never bore fruit as he struggled to improve his poll numbers driven down by concerns about his age and stubborn inflation. Since taking office in January, Trump has acted to gut tax breaks meant to boost clean energy initiatives that were part of Biden's landmark health care-and-climate bill. Obama's health overhaul, which the Democrat signed into law in March 2010, led to a political bloodbath in the midterms that fall. Its popularity only became potent when Republicans tried to repeal it in 2017. Whatever political boost Trump may have gotten from his first-term tax cuts in 2017 did not help him in the 2018 midterms, when Democrats regained control of the House, or in 2020 when he lost to Biden. 'I don't think there's much if any evidence from recent or even not-so-recent history of the president's party passing a big one-party bill and getting rewarded for it,' said Kyle Kondik, an elections analyst with the nonpartisan University of Virginia's Center for Politics. Social net setbacks Democrats hope they can translate their policy losses into political gains. During an Oval Office appearance in January, Trump pledged he would 'love and cherish Social Security, Medicare, Medicaid.' 'We're not going to do anything with that, other than if we can find some abuse or waste, we'll do something,' Trump said. 'But the people won't be affected. It will only be more effective and better.' That promise is far removed from what Trump and the Republican Party ultimately chose to do, paring back not only Medicaid but also food assistance for the poor to make the math work on their sweeping bill. It would force 11.8 million more people to become uninsured by 2034, according to the Congressional Budget Office, whose estimates the GOP has dismissed. 'In Trump's first term, Democrats in Congress prevented bad outcomes. They didn't repeal the (Affordable Care Act), and we did COVID relief together. This time is different,' said Sen. Brian Schatz, D-Hawaii. 'Hospitals will close, people will die, the cost of electricity will go up, and people will go without food.' Some unhappy Republicans Sen. Thom Tillis, R-N.C., repeatedly argued the legislation would lead to drastic coverage losses in his home state and others, leaving them vulnerable to political attacks similar to what Democrats faced after they enacted 'Obamacare.' With his warnings unheeded, Tillis announced he would not run for reelection, after he opposed advancing the bill and enduring Trump's criticism. 'If there is a political dimension to this, it is the extraordinary impact that you're going to have in states like California, blue states with red districts,' Tillis said. "The narrative is going to be overwhelmingly negative in states like California, New York, Illinois, and New Jersey.' Even Sen. Lisa Murkowski, R-Alaska, who eventually became the decisive vote in the Senate that ensured the bill's passage, said the legislation needed more work and she urged the House to revise it. Lawmakers there did not. Early polling suggests that Trump's bill is deeply unpopular, including among independents and a healthy share of Republicans. White House officials said their own research does not reflect that. So far, it's only Republicans celebrating the victory. That seems OK with the president. In a speech in Iowa after the bill passed, he said Democrats only opposed it because they 'hated Trump.' That didn't bother him, he said, 'because I hate them, too.'
Yahoo
an hour ago
- Yahoo
Is Now The Time To Look At Buying Janus International Group, Inc. (NYSE:JBI)?
While Janus International Group, Inc. (NYSE:JBI) might not have the largest market cap around , it saw a significant share price rise of 48% in the past couple of months on the NYSE. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, could the stock still be trading at a relatively cheap price? Let's examine Janus International Group's valuation and outlook in more detail to determine if there's still a bargain opportunity. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The stock is currently trading at US$8.99 on the share market, which means it is overvalued by 21% compared to our intrinsic value of $7.42. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity to buy low in the future? Since Janus International Group's share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. View our latest analysis for Janus International Group Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to grow by 81% over the next couple of years, the future seems bright for Janus International Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? JBI's optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe JBI should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping tabs on JBI for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there's no upside from mispricing. However, the optimistic prospect is encouraging for JBI, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. If you'd like to know more about Janus International Group as a business, it's important to be aware of any risks it's facing. For example, Janus International Group has 2 warning signs (and 1 which is concerning) we think you should know about. If you are no longer interested in Janus International Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data
