Crypto Prices Stabilize Amid US Inflation Decline, Trump's Tariff Adjustments, and SEC Chair Confirmation

Crypto prices experienced a period of stability on Thursday, bolstered by a decline in US inflation, Donald Trump’s willingness to adjust tariffs, and the confirmation of Paul Atkins as the new SEC chair. Despite this stability, Bitcoin, Ethereum, Cardano, and XRP prices are poised for a significant boost this quarter, driven by a hidden $4.5 trillion catalyst.

Most crypto investors are overlooking a $4.5 trillion catalyst that is readily apparent. This catalyst is Donald Trump’s proposed tax legislation, which he has referred to as the "Big, Beautiful Bill." In a recent post, Trump described the bill as the largest tax cuts in US history, stating, "Great News! 'The Big, Beautiful Bill' is coming along really well. Republicans are working together nicely. Biggest Tax Cuts in USA History!!! Getting close." The bill aims to extend the 2017 cuts from the Tax Cuts and Jobs Act and includes additional incentives such as eliminating taxes on tips and overtime pay. This legislation could result in more disposable income for taxpayers, some of whom may choose to invest in the crypto market. Historically, many young investors have used their savings to speculate in assets like Bitcoin, Cardano, Ethereum, and XRP.

In addition to the potential tax cuts, the Federal Reserve may further stimulate the crypto market by cutting interest rates. Recent data showed that US inflation dropped to 2.4%, nearing the Fed’s target of 2.0%. The odds of a rate cut have increased following Donald Trump’s declaration of tariffs on various countries, although he has paused tariffs on over 70 countries while maintaining a base rate of 10%. He also kept hefty taxes on cars, steel, and aluminum, and increased tariffs on China to 125%. Economist Mark Zandi from Moody’s has raised his recession odds to 60% and warned that global investors may lose faith in the US, making its bonds less of a safe haven. The combination of falling inflation and slower economic growth suggests that the Fed may deliver more rate cuts than anticipated. Polymarket traders have placed a 52% chance of the Fed cutting rates by June this year, with another poll indicating that more participants expect the Fed to cut rates three times this year.

Furthermore, the Senate’s confirmation of Paul Atkins as the SEC chair is expected to lead to more deregulation and ETF approvals, which could further boost the crypto market. Bitcoin, Cardano, Ethereum, and XRP prices remain in a deep bear market this year, searching for a catalyst to drive them higher. The top catalysts to watch include potential interest rate cuts, US tax cuts, and the recent confirmation of Atkins as the SEC chair.