- Trump’s push for rate cuts and Powell’s resistance are fueling hopes of a Bitcoin rally if interest rates drop soon.
- Crypto traders expect Bitcoin to surge as inflation fears rise and regulatory clarity from the Clarity Act boosts investor confidence.
- With over $1B in liquidated longs and Trump slamming high rates, a Fed pivot could quickly flip the crypto market bullish.
Donald Trump is pushing hard for interest rate cuts, sparking speculation about a bullish breakout for Bitcoin and crypto markets. After touring the Federal Reserve’s renovation site with Chairman Jerome Powell, Trump doubled down on his call for lower rates.
He claimed cuts would save the U.S. “hundreds of billions” in interest payments. While Powell resisted pressure, Trump used the spotlight to warn that high rates are hurting growth. Crypto traders now see a potential spark for Bitcoin if the Fed eventually caves.
Besides the political drama, macro factors add fuel to this crypto narrative. The U.S. M2 money supply remains at record highs, signaling inflation concerns. Consequently, investors may turn to Bitcoin as a hedge against the weakening dollar.
BTC now trades with a $2.3 trillion market cap, despite a 3% market dip this week. Over $1 billion in long positions got liquidated, showing fear in derivatives markets. However, a rate cut could flip sentiment overnight.
Trump’s Remarks Shake Wall Street and Crypto
During the tour, Trump told reporters that Powell’s management wasn’t a “fireable offense” but called the renovation costly. He described the facility as “luxurious” and noted that the country could afford “just about anything.” He later praised the tour on Truth Social while again stressing the need to cut interest rates.
Additionally, Treasury Secretary Scott Bessent voiced concerns about the Fed’s spending and transparency. He criticized the central bank as a “new kind of central planning” and echoed Trump’s push for accountability. These comments have only increased pressure on Powell ahead of the Fed’s next policy meeting.
Clarity Act Expansion May Drive Institutional Adoption
Meanwhile, regulatory clarity for digital assets is improving. The Senate Banking Committee released a draft that builds on the Clarity Act. It redefines key crypto terms, allows banks to engage with digital assets, and introduces rules to curb illegal activity. Moreover, the draft calls for input from stakeholders by August 5.
Hence, institutional confidence in U.S. crypto markets may grow. This would strengthen the bullish case for BTC and altcoins if macro and regulatory conditions align. The stage is set. Bitcoin is waiting.
