BTC Investors Expect Recovery After Elon Musk Predicts Strong Growth in the US Economy

In a post on X this week, Musk predicted a “double-digit growth” over the next 12 to 18 months, while also suggesting that the US GDP could even grow “triple digits” within the next 5 years if advancements in applied artificial intelligence are translated into real economic output. Although these comments are not directly related to cryptocurrencies, they quickly caught the attention of Bitcoin traders as they seek signs of improved liquidity and risk acceptance sentiment. The Fed Cutting Interest Rates Redirects Attention of Macroeconomic Factors to Bitcoin’s Next Developments Macroeconomic expectations have long played a significant role in Bitcoin price volatility. Investors often monitor growth forecasts, inflation trends, and Federal Reserve policies to assess whether conditions are favorable for risk assets. The US Federal Reserve (Fed)'s rate cut earlier this year sparked debate over whether easier financial conditions could support Bitcoin’s recovery after recent declines. Some prominent figures in the cryptocurrency space have supported Musk’s views. Bitcoin entrepreneur Anthony Pompliano commented that the world’s richest person is publicly forecasting double-digit GDP growth, viewing it as a strong potential backdrop for scarce assets like Bitcoin. Meanwhile, the real asset yield calculation platform Oryon Finance stated that Musk’s forecasts are often “not random numbers,” even if they are controversial. However, skepticism remains. Some market observers have questioned Musk’s track record in long-term forecasting.

Analyst Artem Russakovskii said that economic predictions are not Musk’s strong suit and advised caution when extrapolating these comments into market expectations. Pessimistic views on Bitcoin’s medium-term prospects continue to persist. Market commentator Bariksis stated that despite Musk’s optimism, he predicts the Bitcoin market will decline in 2026. Veteran traders Peter Brandt and Jurrien Timmer of Fidelity also expressed similar views that Bitcoin could return to $60,000 next year. At the time of this writing, Bitcoin is trading at $87,709, down nearly 30% from its peak of $125,100 on October 5, according to CoinMarketCap. According to an Analysis, Bitcoin Still Depends on FED Policies as Inflation Eases Linh Tran, a market analyst at XS.com, noted that Bitcoin’s recent price movements indicate the market is more sensitive to monetary policy expectations than to economic data. Although inflation in the US has decreased from last year’s record highs, the latest Consumer Price Index at 2.7% shows that deflation is still progressing slowly and unevenly, forcing the “Federal Reserve (Fed)” to maintain a cautious stance, making a rapid shift to a strong easing cycle difficult, Tran said. Last week, K33 also indicated that prolonged selling pressure from long-term Bitcoin holders may be approaching a limit after years of stable distribution.