Bitcoin Surges Following Trump’s Shocking Statements
After reaching $109,343 on July 9, Bitcoin continued its upward trajectory, benefiting from former US President Donald Trump’s statement. Trump claimed that the federal funds rate was “at least 3 points too high,” suggesting that a 300 basis point (3%) reduction is necessary.
This unexpected position immediately had a positive impact on BTC’s price. Within 30 minutes of Trump’s post on Truth Social, the price of the leading cryptocurrency began to climb steadily. Investors are anticipating the short-term consequences of such a measure.
According to analysts at The Kobeissi Letter, such a decision by the US Federal Reserve would be unprecedented in modern history. No Fed rate cut has ever exceeded 100 basis points, even during the 2008 crisis or the emergency action in March 2020.
Certainly, the potential savings on public debt are estimated at $174 billion in the first year, or even $2.5 trillion over five years. However, analysts warn against inflationary risks. Such a cut could reignite inflation beyond 5% and cause a sharp decline in the US dollar, potentially exceeding 10%.
Low Rates = Strong BTC ? The Scenario Attracting Investors
For Bitcoin, the consequences are clear : a sudden drop in interest rates would be perceived as monetary stimulus. This should accelerate capital inflows to safe-haven assets like BTC. Although the likelihood of such a Fed decision remains unknown, the immediate market reaction suggests investors are positioning themselves for upside risk in Bitcoin.
- The BTC price rapidly increased within 30 minutes following Trump’s post.
- Purchase volume significantly increased after the comments on interest rates.
- The price tested resistance near $109,761, with higher lows above $108,500.
- The Bollinger Bands compressed to their lowest levels, historically a sign of an imminent breakthrough.
- Institutional accumulation remains visible around support zones.
Although future Fed decisions remain uncertain, the Bitcoin market appears clearly stimulated by Trump’s comments. Savvy investors should stay attentive to upcoming developments that could have lasting effects on prices.
