Bitcoin Starts Surging Toward $110K After Trump Says 'Fed Rate' Is 300 Basis Points Too High

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.