On April 16, Fed Chairman Jerome Powell issued a stark warning about an impending stagflation scenario — higher inflation paired with slower economic growth. He noted that such a situation would make policy decisions extremely difficult, as the Fed's two main mandates — low inflation and maximum employment — could come into conflict.

🔻 Meanwhile, the New York Fed’s recession probability model estimates a 56% chance of a U.S. recession by July.

Against this backdrop, some voices are forecasting that Bitcoin could surge to $1,000,000, becoming a financial safe haven amid mounting economic instability.

5 Reasons Bitcoin Could Reach $1M

1. 📦 BTC Has No Tariffs

As U.S. import tariffs slow down the dollar-based global trade system, countries may increasingly turn to Bitcoin as a non-sovereign settlement tool. BTC is borderless and immune to sanctions — making it an efficient medium for global exchange.

2. 🏦 Race for National and Corporate BTC Reserves

With only 21 million BTC ever to exist, scarcity is driving institutional interest. As reported by Fortune, Binance is in talks with several nations to help them set up sovereign BTC funds. Even officials in Trump’s circle have discussed using tariff revenue to buy BTC for the U.S. strategic reserve.

3. 📉 Potential Fed Rate Cuts

If trade tensions and stagflation worsen, the Fed may lower rates again — just like in the aftermath of the 2008 crisis. This could trigger massive liquidity injections and drive BTC prices upward, following historic patterns.

4. 💸 Soaring U.S. Budget Deficit

The U.S. Congressional Budget Office projects the national debt to rise to 156% of GDP by 2055. Historically, rising debt and inflation are closely tied to increased interest in Bitcoin and other hard assets.

5. 🪙 Bitcoin as "Hard Money"

Gresham’s Law states: “Bad money drives out good.” In times of uncertainty, people spend the weak currency and hoard assets with lasting value — like gold or Bitcoin. As fiat currencies weaken, BTC increasingly resembles the "digital gold" of our era.

Conclusion

From stagflation to ballooning debt, the macroeconomic winds are shifting. Bitcoin is emerging as a modern hedge against traditional system failures. If Powell’s warnings prove true, we may witness a historic surge in BTC adoption — and possibly its ascent to $1 million.

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