Donald Trump is exerting pressure on Fed Chair Jerome Powell to cut interest rates, following the unusual practice of presidents influencing monetary policy. This push could lead to another surge in Bitcoin prices, reminiscent of 2019 when similar pressures saw BTC skyrocket. With Bitcoin currently priced above $95,000, traders are eager for further market developments fueled by these potential cuts.
In a striking continuation of his previous actions, former President Donald Trump is pressing Federal Reserve Chair Jerome Powell to lower interest rates. This approach, while not conventional for a sitting president, follows a formula that has historically correlated with Bitcoin’s price surging. When Trump last coerced the Fed in 2019, Bitcoin saw a dramatic rise from $5,000 to $60,000 within the following year.
The Federal Reserve operates independently from the government, making it atypical for a president to directly lobby for monetary policy changes. However, Trump’s push for aggressive rate cuts seems relentless. After publicly critiquing Powell and urging federal rate reductions, the S&P 500 dropped 2.5%, signaling investor unease amid these market pressures.
On Trump’s Truth Social platform, he flagged potential economic slowdowns, insisting that Powell must act without delay. His renewed interest in creating a US Bitcoin reserve has stirred significant focus, hinting at a possible resurgence in Bitcoin value, should these rate cuts be implemented.
Currently, Bitcoin has been hovering just above $95,000, with many traders eyeing the coveted $100,000 milestone. Drawing parallels to past events, if history is any guide, the combination of Powell’s action and Trump’s pressure could ignite another Bitcoin bull run, much like the previous rate cut episode.
Several crypto platforms, such as Binance and Bybit, are making enticing offers for new users aiming to get in on the action, suggesting that enthusiasm around Bitcoin continues to thrive, especially amidst this high-stakes monetary discourse.
