U.S. President Donald Trump has once again called on Federal Reserve Chairman Jerome Powell to lower the key rate. However, the cryptocurrency community has lost interest in this.
Usually, the crypto market rises on rumors of easing Fed policy, but recently the impact of this event has weakened. We explain what now drives cryptocurrency prices up.
Trump insists on lowering the rate
After taking office as President of the United States, Trump announced the introduction of trade tariffs on imports from various countries. This caused a crash in both the stock and cryptocurrency markets. Due to recession fears, investors actively withdrew money from risky assets, causing prices to steadily fall. In these conditions, the crypto community hoped for only one thing — a reduction in the key rate, which never happened.
Trump has repeatedly criticized Fed Chairman Jerome Powell for not planning to ease the agency's policy. The president even wanted to fire him. However, Powell and his supporters remain steadfast: the regulator will not lower the key rate.
"Inflation, gas prices, electricity, food, and much more have FALLEN!!! The Fed must lower the RATE, as Europe and China have done. What’s wrong with this Powell? It’s unfair to America, which is ready to thrive. Just let it happen — it will be a wonderful event!" — Trump wrote on May 13, addressing the Fed chair on social media.
The crypto industry has also repeatedly called on the Fed to lower the key rate. According to many analysts, the 'money printing press' could prevent an economic collapse. During the last meeting, the regulator kept the key rate in the range of 4.25-4.5%. The market understood the hint.
How the crypto industry is reacting
Prediction markets like Kalshi have often published optimistic forecasts regarding the key rate, unlike traditional financial analysts. For example, the last time Trump addressed Powell, Kalshi users immediately bet on three rate cuts by the end of 2025. Back in March, they expected this to happen four times. However, the forecasts from CME turned out to be correct.
After last week's FOMC meeting, Kalshi expects only two rate cuts this year. This aligns with the forecasts of other platforms and analysts.
The crypto community seems to have realized that Trump cannot force the Fed to lower interest rates. However, other growth drivers have emerged in the market. A recent trade deal between China and the U.S. triggered Bitcoin's rise above $105,000. Investors are returning en masse to the digital asset sector, not thinking about what step Powell will take next.
