Bitcoin has rocketed higher this week, soaring after Tesla billionaire Elon Musk confirmed a bitcoin bombshell.
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The bitcoin price has hit a new all-time high of almost $119,000 per bitcoin—lifting Ripple’s XRP, ethereum and other major cryptocurrencies that have surged toward a combined market capitalization of $4 trillion—as the Wall Street “floodgates” are predicted to open.
Now, as investors declare a $37 trillion “emergency,” U.S. president Donald Trump has helped spur the crypto market higher, warning the Federal Reserve should “rapidly” lower interest rates.
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U.S. president Donald Trump has warned the Federal Reserve should “rapidly” lower interest rates as … More
“Crypto, ‘through the roof,’” Trump posted to his Truth Social account, adding the country is “now back” and the Federal Reserve should “rapidly” lower interest rates as there’s “no inflation.”
The crypto market, which remains dominated by bitcoin, has added $1.2 trillion since crashing to its April lows and is now just $250 billion away from $4 trillion as ethereum and Ripple’s XRP make huge gains.
Ethereum is up almost 20% over the last week, while XRP has surged almost 30%, despite the Fed leaving interest rates on hold this year.
Last month, Trump posted that the Federal Reserve board should “activate,” forcing Fed chair Jerome Powell, who he’s branded “too late,” to cut rates by “at least two to three points,” and “save the U.S. more than $800 billion per year,” spent on servicing the U.S. debt pile.
Powell, who Trump has threatened to fire, kept interest rates on hold again last month after kicking of a reduction cycle in September that’s been put on pause due to fears Trump’s global trade tariffs could see a return of inflation—which has yet to emerge.
The market is overwhelmingly expecting the Fed to leave interest rates on hold at its July meeting in just under three weeks time, according to CME’s FedWatch tracker, though traders are now betting on a September cut.
“Signals of forthcoming Fed rate cuts have buoyed investor sentiment, given that a cut is now more likely than ever and greatly needed,” James Toledano, chief operating officer at Unity Wallet, said in emailed comments.
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The bitcoin price has hit a new all-time high but has been outpaced this week by the ethereum price … More
The crypto market’s move higher has been helped by the slow build of pressure created by bitcoin exchange-traded funds (ETFs) and bitcoin treasury companies led by Michael Saylor’s Strategy, which have been buying up huge swaths of bitcoin and inspiring companies to try creating similar supply pressure by buying ethereum, XRP and others.
“In bitcoin’s case, the rally is being driven not only by expectations of Fed rate cuts, but also by continued inflows into U.S. spot ETFs, corporate treasury buying, and a weaker U.S. dollar,” analysts with Tagus Capital wrote in an emailed note.
“The price surge we’ve seen [this week] is seemingly driven by a confluence of macroeconomic optimism and significant institutional activity in the form of ETF inflows and sovereign and corporate balance sheet allocations,” Toledano added.
