Bitcoin Crash Warning: Benner Cycle Triggers Fed Policy Trap

A warning of an impending Bitcoin crash has gone viral on X, citing the so-called Benner cycle and linking it to Federal Reserve policy.

The post argues that the Fed is caught in a policy trap, where raising interest rates could worsen economic growth and debt-servicing pressure, while holding rates steady or cutting them could lead to renewed inflation pressure.

The warning centers on long-term Treasury yields, which are currently at their highest levels since 2007. The post also references the roughly $40 trillion in U.S. debt and suggests that rising debt costs could increase pressure across financial markets.