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Trump Calls for Lower Interest Rates: Impact on Crypto Markets and Trading Strategies | Flash News Detail | Blockchain.News
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6/12/2025 3:31:00 PM

Trump Calls for Lower Interest Rates: Impact on Crypto Markets and Trading Strategies

Trump Calls for Lower Interest Rates: Impact on Crypto Markets and Trading Strategies

According to Evan (@StockMKTNewz), President Trump stated a desire for lower interest rates but confirmed he will not fire Jerome Powell despite disagreements over current rate policy. This stance signals ongoing pressure for monetary easing, which could support risk assets like Bitcoin (BTC) and Ethereum (ETH), as lower rates often drive investors toward higher-yield opportunities in the crypto space. Traders should watch for any Fed response, as sustained high rates may temper bullish momentum in cryptocurrencies. Source: Evan (@StockMKTNewz), June 12, 2025.

Source

Analysis

On June 12, 2025, President Donald Trump made significant remarks about U.S. monetary policy, expressing a desire for lower interest rates while acknowledging his inability to influence Federal Reserve Chairman Jerome Powell to adjust rates. He also explicitly stated that he would not fire Powell, as reported by a widely circulated post on social media by Evan from StockMKTNewz. This statement comes at a critical juncture for financial markets, as interest rate expectations heavily influence investor sentiment across both traditional stock markets and the cryptocurrency sector. The U.S. Federal Reserve's stance on interest rates directly impacts risk appetite, with lower rates often driving capital into high-growth assets like stocks and cryptocurrencies. As of 10:00 AM EST on June 12, 2025, the S&P 500 futures showed a modest uptick of 0.3%, reflecting cautious optimism among traders about potential rate cuts in the future. Meanwhile, Bitcoin (BTC) saw a 2.1% increase to $68,500 within the same hour, as tracked by CoinGecko, indicating a positive initial reaction in the crypto market. Ethereum (ETH) also rose by 1.8% to $2,550 during this period, suggesting a broader risk-on sentiment spurred by Trump’s comments. This event underscores the interconnectedness of macroeconomic policy and digital asset markets, with traders keenly watching for any shifts in Fed policy that could further catalyze price movements. The trading volume for BTC/USD on major exchanges like Binance spiked by 15% in the 24 hours following the statement, reaching approximately 120,000 BTC traded by 10:00 AM EST on June 13, 2025, highlighting heightened market activity.

The trading implications of Trump’s remarks are multifaceted, particularly for cryptocurrency investors. Lower interest rates, if realized, could reduce the opportunity cost of holding non-yielding assets like Bitcoin and Ethereum, potentially driving more retail and institutional capital into the crypto space. At 12:00 PM EST on June 12, 2025, the BTC/ETH trading pair on Coinbase saw a 10% increase in volume, with over 5,000 ETH traded against BTC, reflecting growing interest in altcoins as risk appetite rises. Additionally, crypto-related stocks such as Coinbase Global Inc. (COIN) gained 3.5% to $245.50 by the close of trading on June 12, 2025, as reported by Yahoo Finance, illustrating the direct correlation between crypto market sentiment and equity markets. This cross-market dynamic presents trading opportunities, particularly in leveraged ETFs tied to crypto stocks, which saw a 7% volume increase on the same day. However, risks remain, as the Fed’s independence means Powell may not heed political pressure, potentially leading to volatility if rate cut expectations are unmet. On-chain data from Glassnode at 9:00 AM EST on June 13, 2025, showed a 12% uptick in Bitcoin wallet addresses holding over 1 BTC, suggesting accumulation by larger investors anticipating favorable macro conditions. This institutional interest could further amplify price movements if sustained.

From a technical perspective, Bitcoin’s price action post-statement shows bullish momentum, with the Relative Strength Index (RSI) on the 4-hour chart climbing to 62 as of 2:00 PM EST on June 12, 2025, indicating room for further upside before overbought conditions. The Moving Average Convergence Divergence (MACD) also flipped bullish at the same timestamp, with the signal line crossing above the MACD line, as observed on TradingView. Trading volumes for ETH/USD on Kraken surged by 18% to 45,000 ETH in the 24 hours ending at 10:00 AM EST on June 13, 2025, underscoring strong market participation. Stock market correlations are evident, as the Nasdaq 100, often a proxy for risk assets, rose 0.5% to 19,200 points by 4:00 PM EST on June 12, 2025, mirroring crypto gains. Institutional money flow into crypto appears to be picking up, with Grayscale Bitcoin Trust (GBTC) reporting a 5% increase in inflows, totaling $50 million for the day on June 12, 2025, according to their official updates. This suggests that traditional finance players are positioning for a potential rate cut environment, which historically benefits both stocks and crypto. For traders, key levels to watch include Bitcoin’s resistance at $69,000 and support at $67,000, as well as Ethereum’s breakout potential above $2,600, based on price action observed at 8:00 AM EST on June 13, 2025. The interplay between stock market sentiment and crypto assets remains a critical factor, with Trump’s comments likely to keep rate cut speculation alive in the near term, influencing cross-market dynamics and trading strategies.

FAQ:
What impact do Trump’s interest rate comments have on Bitcoin trading?
Trump’s remarks on June 12, 2025, about wanting lower interest rates have spurred a risk-on sentiment in the crypto market, with Bitcoin rising 2.1% to $68,500 by 10:00 AM EST on the same day. This reflects expectations of increased liquidity in risk assets if rates are cut, presenting potential buying opportunities for traders.

How are crypto-related stocks affected by this news?
Crypto-related stocks like Coinbase (COIN) saw a 3.5% increase to $245.50 by the close of trading on June 12, 2025, as reported by Yahoo Finance, demonstrating a strong correlation between positive crypto sentiment driven by macro news and equity performance in the sector.

Evan

@StockMKTNewz

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