Bitcoin has suddenly skyrocketed, surpassing its previous all-time high and rising to over $106,000 as new US President Donald Trump confirms his plan for a Bitcoin game-changer.

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Bitcoin price has more than doubled since plunging to lows in August, helped by Tesla billionaire Elon Musk raising doubts about the future of the US dollar.

Now, as a leak reveals that Russia could be poised to overtake the US in Bitcoin reserves, the Federal Reserve has been warned that its “worst nightmare” could come true in 2025.

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ForbesWith his clear “bankruptcy” warning, Tesla boss Elon Musk is triggering calls for a radical solution in the USAFrom Billy Bambrough

“We believe stagflation will occur in 2025, the Fed’s worst nightmare,” wrote analysts at The Kobeissi Letter on X, citing a combination of economic stagnation and rising inflation.

Kobeissi analysts pointed to a report from asset management giant Apollo that predicted “a rebound in inflation in 2025 and no slowdown to justify Fed rate cuts.”

“The likelihood is increasing that the Fed may need to raise interest rates in 2025,” Apollo chief economist Torsten Sløk wrote in the report, asking: “Will we see a repeat of the 1970s, in which the Fed tightened its easing policy too quickly triggered? a rise in inflation in 2025?”

Last week, influential billionaire investor Ray Dalio warned of an impending “debt crisis” that he said will trigger a sharp decline in the value of the U.S. dollar.

US debt has risen sharply in recent years, surpassing $34 trillion in early 2024. The coronavirus and lockdown stimulus measures have contributed to massive government spending and helped inflation spiral out of control in 2022.

Inflation above 10% forced the Federal Reserve to raise interest rates at a historic rate, driving up debt interest payments and stoking fears of a “death spiral.”

The Federal Reserve is widely expected to cut interest rates by a quarter point this week, although data shows inflation rose at a pace last week Bloomberg Survey of economists finds consensus for three more rate cuts in 2025.

However a Financial Times A survey of economists showed the Fed will take a more cautious approach to interest rate cuts next year amid concerns that the Trump administration’s policies, which include sweeping tariffs, deportations and tax and regulatory cuts, could fuel higher inflation .

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ForbesElon Musk quietly pushes US Bitcoin reserve bets as price breaks $100,000From Billy Bambrough

“Inflation has come down more painlessly than I and most people expected, but I think we will still find that the last part (of hitting the target) will be a little more difficult and so this is certainly an unlikely environment for the Fed. “Hurry up to cut rates,” said Jonathan Wright, a former Fed economist now at Johns Hopkins University FT.

Expectations of a Fed rate cut this week have helped push Bitcoin price higher, with analysts predicting the momentum could help the price rise even further in the coming weeks.

Bitcoin’s “rise to all-time highs, including the move above $106,000 this morning, confirms the bullish bias,” FxPro chief market analyst Alex Kuptsikevich said in emailed comments.

“This is particularly important after a three-week consolidation near $100,000. An acceleration in growth is now likely unless unexpected news from traditional financial markets stops this rally.”