Treasury Secretary Bessent Calls for 50 Basis Point Fed Rate Cut in September – Crypto Bulls See More Upside

Key Points

1. Treasury Secretary Scott Bessent advocates for a 50 basis point Fed rate cut in September, citing July's inflation data which showed CPI at 2.7% annually, below estimates.

2. Market odds for a September rate cut surged to 96%, boosting risk assets like the S&P 500 and cryptocurrencies, with Bitcoin briefly dipping below $116,000 before recovering.

3. Political pressure from President Trump includes criticism of Fed Chair Powell and threats of legal action, alongside aggressive tariff policies, though Trump denies tariffs caused inflation.

4. Global crypto market cap remains above $3.8 trillion, with Bitcoin ETFs holding $155 billion in assets and Ethereum ETFs managing $27 billion, indicating strong bullish sentiment.

5. Despite potential macroeconomic volatility, analysts note continued optimism in crypto markets, though some warn of weakness in speculative digital assets.