Rare signal! Forbes: China is ready to drop a bomb on Bitcoin, and the US dollar is on the verge of a "total collapse"!

FX168 Financial News Agency (Asia Pacific) Forbes wrote on Monday (September 2) that China is ready to drop a bomb on the price of Bitcoin, and people are beginning to worry that the US dollar is on the verge of a full-scale collapse, which will put the price of Bitcoin at a "critical tipping point." The current price of Bitcoin is approaching $60,000, higher than the low of $40,000 in January.

The article mentioned that traders are betting that a new round of liquidity injections from the Federal Reserve will put the Bitcoin and cryptocurrency markets at the "cusp" of major moves.

Source: Forbes

In its report on Monday, Forbes reiterated the news that "China is ready to drop a bombshell on Bitcoin prices," citing an article on August 24, which read: "Now, some cryptocurrency experts are betting that China may be about to open its digital door to cryptocurrencies, and economists are calling on China to begin taking monetary stimulus measures to boost the country's sluggish economy."

Source: Forbes

Arthur Hayes, co-founder of Bitcoin and crypto derivatives pioneer BitMex and later founder of Maelstrom Investment Fund, noted in a blog post that he expects China to "finally unleash its long-awaited fiscal stimulus" next year and predicted a "glorious crypto bull run" in China and the U.S.

Peter Schiff, a well-known economist and gold bull, tweeted: "The U.S. dollar index just hit a new low for 2024, and is actually still relatively high, but looks to be on the verge of a full-blown collapse."

As the founder of fund management company Euro Pacific Asset Management and a Bitcoin and cryptocurrency skeptic, Schiff later added: "The U.S. dollar index could easily fall below 90 before the end of the year, challenging the 2020 low. I think this low will be broken in 2025, triggering a dollar crisis, economic collapse, and soaring consumer prices and long-term interest rates."

In August, Federal Reserve Chairman Powell took a dovish tone in his speech at the annual economic symposium for central bank governors in Jackson Hole, Wyoming, and hinted at a rate cut in September, causing the dollar to fall.

“This summer has been tough for the dollar, whose dominance seemed unstoppable as recently as April as it surged against nearly every global currency,” Neil Roarty, an analyst at investment platform Stocklytics, said in emailed comments. “It has now fallen to 2024 lows against the euro, pound and yen.”

The move comes after the minutes of the July meeting of the Federal Open Market Committee (FOMC) showed policymakers were more dovish than previously thought, suggesting that rates could fall sharply as inflation surges to its highest level since the 1980s. Previously, rates surged at a historic pace to their highest level in 23 years under the Biden administration.

The Fed is now widely expected to start a rate-cutting cycle at its two-day monetary policy meeting starting on September 17.

"There is now speculation that (rates) could move faster than initially forecast," said Rorty. "By the end of the year, current rates could fall by as much as 100 basis points. This would reduce dollar expectations for the rest of 2024, but it's worth keeping a close eye on the reactions of other central bankers. This all-important rate gap, the difference in rates between countries, could be a driver of big currency moves in the coming months. Buckle up for a potentially bumpy ride."

In Europe, the ECB and the Bank of England are both expected to cut rates further after starting easing cycles in recent months, while questions remain about the Bank of Japan's policy after its surprise rate hike in July sent global markets reeling.

Meanwhile, bitcoin prices have lost the momentum they accumulated in the first half of 2024, casting doubt on their performance for the rest of the year.

“While we remain optimistic about the medium- to long-term outlook for digital assets, current evidence calls for caution,” Markus Thielen, CEO of 10x Research, wrote in an email.

“While the market has staged a nearly V-shaped rebound after the downturns in early May, early July, and early August, the underlying market structure and fundamentals have gradually weakened. As a result, each decline has been deeper and the subsequent recovery has been more anemic. The latest month-end data suggests that we may be approaching a critical tipping point in September, characterized by a drop in demand.”