Veteran fund manager sees massive upside if Fed slashes rates

Macro investor and fund manager Dan Tapiero believes Bitcoin could gain more than double its value should the U.S. Federal Reserve have to ease monetary policy due to slowing economic growth stemming from tariff-related uncertainty.In a post on X, Tapiero noted that both the U.S. and China are experiencing a “growth-dampening impact” from the continuous trade tensions. He said, “If the US slows hard, could the Fed get to 1.4%, -250 bps from here?”Panic?Tariff uncertainty expected to dampen China growth prospects.BoC cuts rates to 1.4%. Tariff uncertainty having same growth dampening impact on US.If US slows hard, could Fed get to 1.4%, -250bps from here?Imagine how high bitcoin would in that scenario.200k+ pic.twitter.com/0MCpQ3fBIo— Dan Tapiero (@DTAPCAP) May 7, 2025For now, Tapiero’s statements follow news of China’s central bank, the People’s Bank of China (PBOC), cutting its key short-term lending rate by a modest 10 basis points, from 1.5% to 1.4%. The central bank will also lower the reserve requirement ratio by 50 basis points to help add about one trillion yuan ($138.5 billion) into the financial system.The macro strategist also believes that impending policy loosening in the U.S. could lead to significant debasement of fiat currency, thereby fueling the next large move up in Bitcoin. “This is extreme data,” Tapiero added. “Much lower rates and a weaker dollar are needed to offset fiscal austerity, and fiat debasement equals +BTC.”In addition, he pointed out that U.S. consumer sentiment is at levels last seen during the Global Financial Crisis of 2008–09, which seemed to indicate increased pressure for fiscal and monetary stimulus.At press time, Bitcoin is trading at $101,565.42 as per Kraken. The price is up by 32.47% over the last one month.