Trump’s call for lower interest rates sent shockwaves through the crypto market, leading to a massive price jump for Bitcoin and Ethereum.
Bitcoin Hits a New High
On June 9th, Donald Trump urged the Federal Reserve to drastically cut interest rates. This unexpected announcement immediately boosted investor confidence, causing Bitcoin to skyrocket. It blasted past $112,000, setting a new all-time high. This dramatic increase came after a period of relatively stagnant pricing, highlighting how much political and economic news can affect cryptocurrency. The surge broke through weeks of sideways trading, finally giving Bitcoin some upward momentum.
Trump argued that current interest rates are too high, claiming they’re at least three points above where they should be. While not an official policy change, his statement carried significant weight, influencing many traders and investors who saw it as a potential sign of future economic easing. Bitcoin’s price has since slightly dipped from its peak, but it’s still up significantly.
Ethereum Also Benefits
Following Bitcoin’s lead, Ethereum also saw a major price increase, jumping around 5% to its highest point in almost a month. While some of this was due to the positive sentiment surrounding Bitcoin, Ethereum also benefited from increased investor interest. Ethereum had been lagging behind Bitcoin recently, but this rally suggests renewed confidence in altcoins (cryptocurrencies other than Bitcoin). At the time of writing, Ethereum continues its climb.
Overall Market Impact
The rally wasn’t limited to just Bitcoin and Ethereum. Other cryptocurrencies like Cardano and XRP also saw gains between 4% and 6%. This shows the ripple effect of major news events on the entire crypto market.