The cryptocurrency market has witnessed a sharp rally, led by Bitcoin (BTC) and Ethereum (ETH), after a surprising macroeconomic catalyst. Reports reveal that following US President Donald Trump’s urgent call for an aggressive rate cut, the price of BTC and ETH, as well as several other cryptocurrencies and stocks, skyrocketed.
Bitcoin Hits New ATH After Trump’s Rate Cut Call
On June 9, Trump took to Truth Social to call for a significant cut to the Federal Reserve (FED) Interest rate. Considering the current economic and political situation in the United States, this announcement immediately sparked bullish sentiment and momentum across the financial sectors.
Within minutes of Trump’s post, Bitcoin surged past the $112,000 mark, setting a new all-time high and breaking its previous record of over $111,000. Notably, Bitcoin’s price jumped dramatically to this high after hovering just below the $110,000 region. This shows just how much impact macroeconomic and political changes can have on the crypto market.
The sudden shift in sentiment also marked a significant change in BTC’s market dynamics, breaking long weeks of price compression and sideways movement that had limited its upside potential. Notably, Trump’s unexpected statement acted as a jolt to breaking market inertia, as most cryptocurrencies, in addition to Bitcoin, had been experiencing significant downward pressure.
In his post, the US President strongly emphasized the negative financial impacts of the country’s currently elevated interest rates, stating that they were already “at least 3 points too high.” While his rate reduction call is not an official policy move, Trump’s current influence over crypto market sentiment has been growing strong since his election and public support of digital assets. As a result, many traders or investors may have interpreted his post as a foreshadowing of future monetary easing.
According to CoinMarketCap, the Bitcoin price has retraced slightly from its ATH level of $112,000 to around $111,173, reflecting a modest 2.21% increase in the past 24 hours. This recent surge has also extended toward lower-cap cryptocurrencies like Ethereum, Cardano, XRP, which have gained between 4% and 6%.
Ethereum Follows Bitcoin’s Lead In Gains
Tracing Bitcoin’s path, Ethereum has also experienced a notable rally following Trump’s rate cut call. The top altcoin surged by about 5% to $2,746—the highest level reached in nearly a month. Although the gains were partly due to the sentiment flip from Bitcoin’s upward momentum, ETH benefited significantly from its own investor inflows as traders looked to capitalize on the growing market strength.
In recent weeks, Ethereum lagged in both performance and price behind Bitcoin. The cryptocurrency had been caught in a prolonged consolidation phase and price decline. However, the recent rally, however small, now indicates that confidence may be returning to altcoins. At the time of writing, Ethereum continues its upward momentum, trading at $2,792 with a 6.43% gain in the past day.
Featured image from iStock, chart from Tradingview.com
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