Bitcoin Crash Warning Circulates on X Ahead of October 5 Deadline

A warning about a potential Bitcoin crash is circulating on X, with a trending post comparing the S&P 500 chart to the so-called Benner cycle and suggesting that something extremely bad could happen on Monday, October 5.

The post argues that the Federal Reserve has effectively reached a policy trap, where raising interest rates could lead to higher borrowing costs and long-term Treasury yields, while weakening economic growth and increasing debt-servicing pressure.

Holding rates steady or cutting them could also worsen inflation, loosen financial conditions, and eventually force another round of tightening, creating a cycle where higher rates lead to slower growth and lower rates lead to renewed inflation pressure.

The post specifically points to long-term Treasury yields, which are at their highest levels since 2007, and roughly $40 trillion in U.S. debt, which could increase pressure across financial markets.