Fidelity, a giant in financial services, suggests in its latest analysis that a potential wave of inflation in 2025 could benefit Bitcoin $92,396. The company’s research director, Chris Kuiper, highlights that persistent inflation and fiscal deficits may push the U.S. into a stagflation scenario, characterized by stagnant economic growth alongside high inflation and unemployment.
2025 Bitcoin Predictions
In his report, Kuiper emphasizes that Bitcoin’s performance will vary depending on how financial and monetary institutions respond to stagflation. If they focus on combating the recession aspect, Bitcoin may perform well. However, if controlling inflation becomes the priority, it could face significant challenges.
“If financial and monetary authorities choose to tackle the ‘stag’ issue with increased spending or monetary instruments, Bitcoin could potentially perform well, but likely with some delays.”
Kuiper recalls that during the second wave of inflation in the 1970s and 1980s, gold significantly appreciated in value. He believes that regardless of the macroeconomic environment in t…