Bitcoin Surges 10% to New All-Time High of $112,599 on Trump's Rate Cut Call

Bitcoin's price surged to a new all-time high, briefly exceeding $112,599 on Thursday, marking the second consecutive day of record-breaking prices. This significant milestone was driven by a combination of factors, including strong institutional demand and a weakening U.S. dollar. The cryptocurrency's price had been consolidating for weeks, but it broke out of this pattern after U.S. President Donald Trump called for the Federal Reserve to lower interest rates again.

President Trump, known for his crypto-friendly stance, took to his social media platform Truth Social to express his views. He highlighted the surging crypto and stock markets, stating that the Federal Reserve should rapidly lower rates to reflect this strength. He emphasized that the U.S. should be at the top of the list with no inflation, suggesting that the current economic conditions warrant a rate cut.

This is not the first time President Trump has pushed for interest rate cuts. He has frequently criticized Federal Reserve Chair Jerome Powell for not lowering interest rates, even going so far as to call him a "loser" and "stupid," and threatening to fire him. Powell, in response, has blamed Trump's policies for the lack of rate cuts. The Federal Reserve started aggressively raising rates in 2022 to control 40-year high inflation, which negatively impacted both stocks and crypto. Despite cutting rates last year, the central bank has been hesitant to lower them further.

Bitcoin's price had been on a steady upward trajectory throughout 2025, with a year-to-date increase. The cryptocurrency's price had been boosted by expected U.S. rate cuts and a weak dollar, which made it an attractive investment for those looking to hedge against inflation. The recent rally in tech stocks also provided a tailwind for Bitcoin's price, as investors sought out high-growth assets.

Other major coins and tokens also saw gains on Thursday. Ethereum, the second-largest cryptocurrency by market capitalization, recently priced at $2,783—a nearly 5% jump. Solana, the sixth biggest virtual coin, rose by nearly 2%, and was trading hands for $157. This broad-based rally in the crypto market suggests that investors are optimistic about the sector's prospects.

Analysts have weighed in on the potential impact of a rate cut on asset prices, with some suggesting that such a move could further boost Bitcoin's value. Joe DiPasquale, CEO of crypto fund manager BitBull Capital, expects further Bitcoin gains ahead. He attributes Bitcoin's rally to a mix of strong ETF inflows, renewed institutional demand, and a broad risk-on environment as investors anticipate Fed rate cuts. He also noted that once Bitcoin cleared key psychological levels around $110,000, sidelined capital jumped in, pushing prices toward new highs. However, he cautioned that the market remains vulnerable to sharp pullbacks if sentiment shifts.