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Trump's warning of "a great battle ahead" may raise expectations for monetary easing by the Federal Reserve, benefiting Bitcoin

Mar 4, 2026 11:08:57

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According to an article published by Forbes, Trump recently warned that U.S. military actions against Iran could last more than five weeks, stating that "the real large-scale operations have not yet begun, and the big ones will come soon." The market believes that if the conflict in the Middle East becomes prolonged, it may drive up fiscal spending and increase the likelihood of the Federal Reserve easing monetary policy or even restarting large-scale liquidity injections, which could be beneficial for cryptocurrencies like Bitcoin. Some aggressive predictions suggest that Bitcoin could reach highs of $200,000 to $500,000 within the year.

Additionally, a potential financial crisis driven by artificial intelligence could trigger a shock more severe than that of 2008, similarly benefiting Bitcoin to reach new historical highs. Analysts point out that geopolitical risks, expectations of fiscal expansion, and shifts in monetary policy are becoming important macro variables for the current market's bets on Bitcoin's upward movement.

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