Bitcoin Starts Surging Toward $110K After Trump Says 'Fed Rate' Is 300 Basis Points Too High
2025-07-09 17:55:43
Main Idea
Bitcoin surged toward $110K following Trump's statement that the Fed rate is 300 basis points too high, with analysts discussing potential impacts of such a rate cut on inflation and asset prices.
Key Points
1. Bitcoin surged to $109,343 within 30 minutes of Trump's Truth Social post calling the current Fed rate 300 bps too high.
2. Trump argued that delaying a 3% rate cut imposes an annual burden of $360 billion on refinancing costs.
3. Analysts at The Kobeissi Letter noted that a 300 bps cut could reduce interest expenses by roughly $174 billion if 20% of the debt is refinanced.
4. A 300 bps rate cut outside a recession would be unprecedented and could reignite inflation above 5%, weaken the U.S. dollar, and impact asset prices.
5. The potential rate cut is viewed as monetary stimulus, likely accelerating capital inflows into assets like Bitcoin.
Description
Bitcoin surged to $109,343 on July 9, up 0.8% over the prior 24 hours, according to CoinDesk Research's technical analysis model. In a Truth Social post at 10:00 a.m. ET, Trump declared that the U.S. federal funds rate is “at least 3 points too high,” referring to a 300 basis point (3%) cut. He argued that delaying such a move imposes an annual burden of $360 billion on refinancing costs. Within 30 minutes, BTC began rising steadily as traders appeared to price in the short-term implications of ...
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