📌 The Federal Reserve holds steady, Trump pushes for a drastic rate cut: The red and black of the crypto market The Federal Reserve has once again kept interest rates unchanged at 4.25–4.50%, concerned that inflation remains high and is not ready to ease up. Trump, however, is publicly calling for a drastic 3-point rate cut, claiming it will make the market soar. The two seem to be playing opposing roles, one as the good cop and the other as the bad cop, appearing to be in conflict, but in reality, both are influencing market sentiment. Why are they doing this? The Federal Reserve's goal: To gradually bring down inflation without directly crashing the economy, so they choose to stay steady and not rush to ease. Trump's goal: To deliver a good-looking report card, wanting to make the market more lively and for everyone to remember that "when Trump was in office, the market soared the most." The result is: one stubbornly holds steady, while the other desperately pushes for rate cuts, causing the market to fluctuate wildly, riding an emotional rollercoaster. In the short term: ✅ The market anticipates liquidity, risk appetite is warming up ✅ BTC, ETH, altcoins, and DeFi are expected to rise in the short term ✅ For example, after Trump posted in early July, BTC briefly surged to about $109,000 Long-term risks: ⚠️ Political interference undermines the independence of the Federal Reserve ⚠️ The market fears that policies may become unpredictable ⚠️ If market confidence is damaged, volatility may increase, and cryptocurrency prices could experience severe fluctuations If a rate cut does happen: 1️⃣ Money becomes cheaper → Speculative funds become more active 2️⃣ The crypto market heats up more, potentially welcoming a new wave of short-term rallies However, overly loose policies may trigger a new round of inflation, increasing risks If high interest rates are maintained for too long: 🔥 Hot money retreats 🔥 Liquidity in the crypto market decreases 🔥 VC investments shrink, making it harder for new projects to raise funds 🔥 Mining companies face rising cost pressures, narrowing profit margins In summary: Short-term bullish due to liquidity expectations brought by rate cut anticipation; Long-term caution is needed: political risks, shaken market confidence, and structural pressures from prolonged high interest rates. #Bitcoin #Cryptocurrency