Trump's Legal Loophole Is Keeping Inflation Alive — Here's Why Bitcoin Is Caught in the Fed's Crosshairs

WHY IT MATTERS

Think of it this way: the Federal Reserve is like a thermostat for the economy. When prices rise too fast (inflation), the Fed turns up interest rates to cool things down. Higher interest rates make safe investments like savings accounts and bonds more attractive, which pulls money away from riskier bets like Bitcoin. Right now, certain government policies are reportedly keeping inflation hotter than expected, which means the Fed can't lower rates — and that's bad news for Bitcoin's price in the short term. Even though Bitcoin is sometimes called 'digital gold' and a hedge against inflation, in practice, it often behaves more like a tech stock — it tends to do better when interest rates are low and money is flowing freely.