Bitcoin and Top Cryptos Gain After Trump’s Comments
Bitcoin (BTC) and most top cryptocurrencies rose about 5% on Tuesday. This followed US President Donald Trump’s remarks on monetary policy in a Politico interview. Trump said the next Federal Reserve Chair will be expected to lower interest rates immediately.
Trump will name the next Fed Chair soon. White House economic advisor Kevin Hassett is the leading candidate, according to prediction platforms Polymarket and Kalshi. On Tuesday, Hassett said in a WSJ Leadership Institute panel, “there’s plenty of room to lower rates.”
Federal Reserve Expected to Cut Rates
The Federal Open Market Committee (FOMC) plans to lower interest rates by 25 basis points in its Wednesday meeting. Experts call this a hawkish cut. Many expect the Fed to take a wait-and-see approach in January. This is due to delayed economic data from the recent government shutdown.
Market Impact and Cryptocurrency Price Moves
Trump’s comments lifted market mood before the Fed decision. The crypto market saw over $263 million in short liquidations in the last four hours, per Coinglass data. Bitcoin climbed above $94,000 and neared $95,000 for the first time since November 17.
The rise in Bitcoin helped boost the broader crypto market. Almost every token in the top 100 traded higher. Ethereum (ETH), XRP, BNB, and Solana (SOL) rose 8%, 4%, 3%, and 6%, respectively, on Tuesday.
