Chamath Palihapitiya Predicts Bitcoin Price Surge Amid US Government’s New Bill

Venture capitalist Chamath Palihapitiya, CEO of Social Capital, has warned investors about a new bill planned by the US government, dubbed the “One Big Beautiful Bill Act.” During an appearance on the All-In Podcast on May 24th, Palihapitiya stated that if the bill passes, bitcoin prices could skyrocket.

Palihapitiya criticized the proposed legislation, arguing that it contradicts the government’s campaign promises to reduce public spending. He went so far as to call it “anti-DOGE,” suggesting it undermines the earlier reforms initiated by Donald Trump with Elon Musk’s support.

The investor also addressed Moody’s recent downgrade of the US government’s credit rating, adding to his critique of the current economic policies.

“We Are in Trouble, and the Price of Bitcoin Could Explode”

Palihapitiya, who commands a significant following of over 1.8 million on X, believes the One Big Beautiful Bill Act, already approved by the House, leaves too much room for inflationary interpretations. He doubts the bill will benefit the Trump administration and anticipates its swift passage through the Senate.

If his predictions hold true, Palihapitiya expects the Federal Reserve to raise interest rates, prompting investors to sell their debt securities. He foresees rates potentially climbing above 6% annually, a level he considers alarmingly high. He noted that the Fed’s latest bulletin from early May 2025 maintained the benchmark interest rate between 4.25% and 4.5%, far from the 2% annual target.

“What are the implications when rates go to those levels? You will deleverage from the United States, you will sell US debt. You will own things like gold and Bitcoin. If you are curious about what is happening with gold and Bitcoin, they have started to rise in recent days,” Palihapitiya concluded, forecasting a severe crisis for the US government.

Palihapitiya acknowledged that the Senate could amend the bill, emphasizing the need for austerity rather than increased inflation. However, he remains skeptical of significant changes and anticipates that “financial markets will punish this.”

Brazilian Entrepreneur Highlights Record US Money Printing

Brazilian entrepreneur João Paulo Mayall, co-founder of QR Capital, has also raised concerns about another factor influencing global financial markets, including bitcoin. He pointed out that the US government has resumed printing money, with the M2 money supply reaching a new all-time high.

A further increase in this Fed-monitored indicator could signal a future scenario of high inflation, which would also impact the US economy.

Stay ahead of the curve in the fast-paced crypto world – explore the latest updates and trends at Cryptonewsfeeds.com.