Trump Urges 100 Basis Point Rate Cut Bitcoin Jumps 3% Ethereum 3%

President Trump has urged the Federal Reserve to implement a significant 100 basis point cut in interest rates, a move that could have far-reaching implications for the cryptocurrency markets. This call comes in response to the latest Consumer Price Index (CPI) inflation data, which highlighted ongoing inflationary pressures. Trump's demand for rate cuts underscores potential changes in monetary policy, which could influence debt costs and economic stability.

The call for a rate cut has ignited discussions among traders and investors, particularly concerning its impact on risk assets like cryptocurrencies. Historically, major rate cuts have led to bullish momentum in crypto assets due to expectations of a weaker US dollar and a favorable risk environment for digital assets. Traders are closely monitoring upcoming Federal Reserve statements and price movements in major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) for potential breakout opportunities.

The potential for a drastic rate cut has also sent ripples through financial markets, with immediate implications for both stock and cryptocurrency sectors. Bitcoin saw an immediate price spike within an hour of the announcement, moving from $68,500 to $70,700. Ethereum followed suit, rising to $3,550 in the same timeframe. The stock market also reacted positively, with the S&P 500 futures gaining, signaling a broader risk-on sentiment that often correlates with crypto market rallies.

The trading implications of Trump’s call for a rate cut are substantial for cryptocurrency markets, as lower interest rates typically drive capital into high-risk, high-reward assets like BTC and ETH. This volume spike indicates heightened retail and institutional interest, likely fueled by expectations of cheaper borrowing costs boosting liquidity in risk markets. Additionally, altcoins such as Solana (SOL) and Cardano (ADA) recorded gains, reflecting a broad-based rally across crypto pairs.

From a technical analysis standpoint, Bitcoin’s Relative Strength Index (RSI) on the 1-hour chart jumped, indicating overbought conditions that could signal a short-term pullback if momentum wanes. Ethereum’s RSI similarly climbed, with trading volume on ETH/USDT pairs increasing. On-chain metrics further support bullish sentiment, with a significant uptick in Bitcoin wallet addresses holding over 0.1 BTC, suggesting retail accumulation.

The institutional impact of a potential rate cut cannot be understated. Lower rates often encourage capital flows from traditional markets into cryptocurrencies, as seen in previous easing cycles. Spot Bitcoin ETF trading volumes spiked, indicating institutional money pivoting toward crypto as a diversification play. The S&P 500’s positive movement also suggests a risk-on environment that could sustain crypto rallies, though traders must remain vigilant for policy pushback from the Federal Reserve. This event offers a unique trading window for those leveraging stock-crypto correlations, with key levels and volume trends providing actionable insights for both short-term scalps and longer-term holds.