Shocking! On May 29, Federal Reserve Chairman Powell held a crucial secret meeting with former President Trump at the White House. This event could become a turning point in the crypto space!
Although this meeting superficially focused on the disagreement over rate cuts, with Trump pressuring and Powell emphasizing the Fed's independence, it sent significant signals behind the scenes. On that day, the yield on 10-year U.S. Treasuries fell by 7 basis points, suggesting that the policy game is easing. Trump also changed his previous 'threat to dismiss' stance, stating he 'respects the Fed's independence', which greatly reduced market concerns about political intervention.
Three major impacts reshaping the crypto landscape
- Expectations of interest rate cuts soar: Trump is pushing for rate cuts in 2025. If the Federal Reserve really implements cuts in the second half of the year, Bitcoin is expected to repeat the spectacular surge of 18% in a single week after the September 2024 rate cut. This will inject strong momentum into Bitcoin's price and attract more investors to the market.
- Institutions are rushing in: There are reports that the Trump administration holds 200,000 Bitcoins as strategic reserves, while MicroStrategy has hoarded 506,000 Bitcoins by March 2025, worth up to $43 billion. The release of policy signals further stimulates capital inflows, and the massive entry of institutions will provide strong financial support to the market, pushing Bitcoin's price higher.
- The compliance and risk-hedging value stands out: Against the backdrop of the EU MiCA regulations, Bitcoin has become a 'safe haven' due to its decentralized nature. After the U.S. Department of Justice seized Bitcoin in 2024, the price actually rose by 12%. This phenomenon fully reflects Bitcoin's resilient vitality and appeal in special contexts, further highlighting its compliance and risk-hedging advantages.
Short-term trend prediction
- Optimistic scenario: If there is a rate cut in September and the introduction of crypto-friendly policies, Bitcoin is expected to break through $120,000, with an increase of up to 20%. This will be a feast of wealth, and investors need to closely monitor policy trends to seize this rare opportunity.
- Neutral scenario: If interest rates remain unchanged and reserves are expanded, Bitcoin's price will fluctuate between $90,000 and $110,000. At this time, investors should remain calm and patiently wait for further clarification of the market direction.
- Pessimistic scenario: If EU regulatory impacts intensify and economic data remains strong, Bitcoin may drop to $78,000 (the miner cost line). In this case, investors need to operate cautiously and reduce risks.
Risk reminder
The wording of the Federal Reserve's June meeting and the pace of Trump's policies are key variables that will have a significant impact on the market. It is recommended that investors gradually accumulate below $100,000 while being wary of market correlation risks to avoid significant losses due to market fluctuations.
Policy games and liquidity, which one can truly influence cryptocurrency prices? This is a thought-provoking question. Feel free to share your views in the comments section, and let's discuss the future of the crypto space together! If you are interested in the crypto world, consider sharing this with friends who are also interested in it, and embark on a journey of wealth together!
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