‘They Won’t Stop Printing’—The Real $1.8 Trillion Reason Why The Fed Is Quietly Predicted To Trigger A 'Massive' Bitcoin Price Boom To Rival 2021

The U.S. federal budget deficit for July hit $432 billion, according to Treasury data reported by Reuters, the ​largest monthly deficit since March 2021 that’s catapulted the 2026 fiscal-year-to-date budget gap to $1.8 trillion.

The only two higher monthly deficits were in June 2020, at $864 billion, and in April 2020, at $738 billion, both due to pandemic-era economic ​shutdowns.

Surging deficits, adding to the U.S.’s spiralling near-$40 trillion debt pile, has been seized on by bitcoin and crypto traders as one reason why the bitcoin price could move higher in coming months.

"The only thing that matters in finance is that the people in Washington DC, they are absolutely ridiculous," Anthony Pompliano, a crypto investor and chief executive of the bitcoin treasury company ProCap Financial told Fox Business, predicting the bitcoin price will climb by an average of 30% every year for more than the next 20 years.

“They will not stop printing money. If they keep printing money, bitcoin will go up over the long run, so will gold, real estate, so will stocks … you look at government money printing and it’s accelerating," Pompliano said.

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Meanwhile, others have pointed to recent international events as signs the Federal Reserve is poised to rev up its money printer.

"The more they print, the higher bitcoin goes," crypto trader Arthur Hayes, who cofounded the shuttered BitMex exchange before running the Maelstrom family office, wrote in a blog post, adding he expects the Fed to “allow the unfettered money printing to manipulate the dollar-yen rate lower" after a historic U.S.-Japan intervention late last month.

“But I wouldn’t bet against it happening. In fact, I’m betting it will happen and continue to increase our exposure to instruments that will reveal the impact of a resumption of massive Fed balance sheet growth. Those assets are bitcoin, physical gold, and gold miners.”