The Federal Reserve’s shift away from quantitative tightening and rate cuts is making fixed-income assets less appealing. High tech credit risks, like Oracle’s soaring debt protection costs, are driving investors towards alternative assets such as Bitcoin. Bitcoin fell 4% to $88,140, while the S&P 500 nears its all-time high, setting the stage for Bitcoin to potentially hit $100,000 by year-end.

The Fed’s halt to quantitative tightening and expectations of rate cuts sparking a capital rotation towards scarce assets like Bitcoin. Lower interest rates and increased systemic liquidity are decreasing demand for fixed-income assets, pushing investors towards alternative options. Tech credit risks are heightening, with Oracle’s debt protection costs surging to 2009 levels.

Investors are wary of the high-stakes push for debt-fueled spending, including Trump’s Genesis Mission, driving demand for debt protection. Bank of America warns that steady Fed rates raise odds of an economic slowdown, pushing institutional capital towards de-risking tech exposures. The convergence of factors could propel Bitcoin past $100,000 in the coming months, supported by market dynamics and structural risks in the equity market.

Read more at Cointelegraph: $100K BTC Price Depends On Fed Policy Pivot, AI Debt Bubble