Trump Advocates for Fed Rate Cut to Support Cryptocurrency Market
Bitcoin reached a new all-time high of $112K on May 22 before dropping below $100K, but is currently showing signs of recovery. Analyst Carlo Pruscino from CMC Markets suggests that a Federal Reserve rate cut could push Bitcoin back to its previous high.
Trump Advocates for Rate Cuts
Donald Trump criticized the Fed's delay in rate cuts on Truth Social, stating:
- Europe has made 10 rate cuts while the US remains stagnant.
- Claims there is no current inflation to justify high rates.
- Believes US borrowing costs are excessive.
Current borrowing rates are between 4.25% and 4.50%. According to CME Group, 97.5% of market participants expect these rates to remain unchanged in the upcoming meeting on June 18. Over half anticipate a 25 basis point cut by mid-September.
“If further rate cuts come sooner than expected, it will impact Bitcoin and other cryptos significantly.” – Carlo Pruscino
Should a rate cut occur earlier than anticipated, Bitcoin is likely to be among the first assets to react.
Key Altcoins to Watch
- BTC Bull Token ($BTCBULL): Designed to benefit from Bitcoin's performance with a potential rise in value and airdrop incentives at $150K and $200K.
- Solaxy ($SOLX): Aiming to alleviate Solana's congestion issues with its Layer 2 solution, currently in presale with over $45M raised.
- PepeCoin ($PEP): Gained over 3,000% since launch and recently saw a 28% increase in thirty days, nearing a major resistance level.
Major cryptocurrencies like Bitcoin and Ethereum may begin to rally with a forthcoming rate cut, potentially boosting the altcoin market as well.