Bitcoin has once again reached a historic high. The global financial arena is anticipating changes due to recent statements by Donald Trump and expected Federal Reserve decisions.
Trump's Strategic Reserve Remarks
One of the significant factors contributing to Bitcoin’s sharp rise was Donald Trump’s comments over the weekend. In response to a question about creating a strategic reserve for Bitcoin, Trump said, “Yes, I think we will.” This statement led to expectations that the new president of the United States might take concrete steps toward cryptocurrency initiatives. American media suggests that one of Trump's first actions in the White House will be to implement this reserve.
Markets Remain Alert Ahead of Fed Decision
Another factor supporting Bitcoin’s price rise is the Fed rate decision expected this week. The Federal Reserve is anticipated to announce a 25 basis point rate cut on Wednesday. According to the CME Fed Watch Tool, the probability of this cut has been priced in at over 97%. The Fed has already cut rates by a total of 75 basis points since the beginning of the year, leading to expectations of new liquidity flowing into the markets. This expectation presents another reason for investors to consider cryptocurrencies. As interest rates decrease, the attractiveness of the US dollar diminishes, increasing demand for alternative investment vehicles. Bitcoin’s recent surge is strongly influenced by this overall economic trend. As of the time of writing, Bitcoin is trading at around $104,700. The markets continue to fluctuate under the influence of Trump’s administration and the Fed’s policies.
Thus, future steps by the new US administration and changes in monetary policy may significantly influence the further movements of Bitcoin and other cryptocurrencies.
