Trump's Rate Cut Call Boosts Bitcoin's Stability Amid Tariff Fears

President Donald Trump has called for the Federal Reserve to reduce interest rates, citing rising tariffs on China and claiming that there is "NO INFLATION" despite recent market volatility. This move has sparked discussions about the potential impact on Bitcoin, as traders consider the cryptocurrency as a hedge against political uncertainty and policy shifts.

Bitcoin's price remained relatively stable on Monday, hovering around key support levels despite Trump's aggressive rhetoric on social media regarding trade tariffs and Federal Reserve policy. Trump accused China of unfair tariff retaliation, citing a 34% increase, and insisted that there is no inflation despite recent market turmoil. Bitcoin, however, managed to find its footing after dipping below $75,000 earlier in the day, climbing back to trade around $76,561 at the time of reporting. The overall crypto market had shed over $100 billion since April 1st due to tariff fears.

Trump's statement has significant economic implications. If the Federal Reserve responds to his pressure by cutting rates, liquidity could surge, potentially benefiting Bitcoin. Historically, dovish monetary policies have fueled demand for risk assets, including cryptocurrencies. With over $100 billion wiped off the total market cap of cryptocurrencies in recent days due to macroeconomic fears and tariff shocks, traders are reassessing their strategies. The question now is whether emergency rate cuts or quantitative easing could help Bitcoin rebound from its current slump.

On-chain data suggests that Bitcoin has found support at around $74,000, aligning with a major supply cluster below $80,000. Over 50,000 BTC are held at this level, indicating that investors who have been active for five months typically hold at this price point. These investors have steadily raised their cost basis until March 10th, after which they remained dormant. As market participants speculate on Trump's next moves, Bitcoin could emerge as a key beneficiary if inflation remains low and the credibility of fiat currencies is called into question.

While traditional financial markets navigate the chaos, Bitcoin holders are closely watching the Federal Reserve's next steps. If rate cuts are implemented, Bitcoin's next bull run could be on the horizon. The cryptocurrency's role as a hedge against political and economic uncertainty is becoming increasingly apparent, making it a focal point for traders seeking to protect their assets in a volatile market environment.