Former U.S. President Donald Trump has once again shaken the financial world with a bold call for the Federal Reserve to slash interest rates by a full percentage point. This statement comes at a time when inflation remains stubborn, markets are jittery, and global uncertainty is peaking.
🗣️ “The Fed needs to act now – one full point cut,” Trump declared in a recent public appearance. While the current Federal Funds Rate stands between 5.25% – 5.50%, a 100 basis point cut would mark a drastic pivot toward easing — sending shockwaves through both traditional and crypto markets.
📉 WHY DOES THIS MATTER?
In the world of macroeconomics, rate cuts tend to weaken the dollar and stimulate liquidity. That liquidity often flows into risk assets — including stocks, commodities, and notably, Bitcoin ($BTC). In previous cycles, similar monetary easing triggered bullish momentum across the crypto market, with investors looking for assets that hedge against fiat devaluation.
If the Fed heeds Trump’s advice, it could:
🔥 Ignite a fresh Bitcoin rally as real yields fall
🪙 Push crypto adoption further amidst a declining dollar
🏦 Increase institutional flows into BTC as an inflation-resistant asset
📈 Support a shift in sentiment across risk-on markets
📊 BITCOIN PRICE OUTLOOK
Following Trump’s statement, $BTC briefly bounced from $67,500 to $69,000, showing signs of renewed speculative interest. On-chain data reveals a rise in whale activity and dormant BTC wallets reactivating — often a signal of incoming volatility.
If the Fed even hints at a pivot, here’s what we could expect:
Resistance Zone: $70,000 – $72,500
Breakout Target: $75,000+
Support Levels: $66,000 and $63,500
Key Pivot: Weekly close above $70K
🔎 WHAT’S THE XRP ANGLE?
Trump’s monetary policy leanings could also influence cross-border payment systems like XRP Ledger. Lower interest rates could drive global remittance growth and fintech expansion — both areas where XRPL thrives. Any move that weakens USD dominance strengthens the use case for decentralized, borderless networks.
⏳ FINAL THOUGHTS
Whether the Fed listens or not, Trump’s comments have once again sparked debate and spotlighted crypto’s relevance in macroeconomic discussions. With U.S. elections approaching and inflation debates intensifying, Bitcoin stands at the intersection of politics and finance.
Stay sharp. Markets are moving. 📲
