President Trump has urged the Federal Reserve to implement interest rate cuts amid increasing tariffs, which has led to a notable rise in Bitcoin’s value. Following the Fed’s decision to maintain current interest rates, Bitcoin surged 5%. Analysts predict further growth for Bitcoin, contingent on favorable economic conditions and recovering support levels for the cryptocurrency.

Pro-Bitcoin US President Donald Trump has recently urged the Federal Reserve to consider cutting interest rates to stimulate economic activity, particularly in light of escalating tariffs. In a recent Truth Social post after the FOMC meeting, Trump advocated for rate cuts, asserting that the Federal Reserve would be better off adopting such measures during this transition period.

Trump announced plans to implement new tariffs on most imports starting April 2, which he termed “Liberation Day in America.” His call for rate cuts coincided with the Fed’s decision to keep interest rates unchanged. Following this announcement, Bitcoin and broader markets experienced substantial gains.

Despite the Fed maintaining a target funding rate between 4.25% and 4.5%, Chair Jerome Powell’s optimistic remarks contributed to a resurgence in Bitcoin, which rose 5% to an intraday high of $87,482. Although inflation predictions were adjusted upwards to 2.8% and economic growth projections were revised down to 1.7%, the Fed’s future intentions to reduce rates twice in 2025 provided a favorable outlook for investors.

Analysts have noted that this bounce-back in Bitcoin could herald further advances, amid expectations of potential rate cuts and an increasing M2 money supply that may bolster the cryptocurrency market. Wells Fargo’s guidance indicates that Bitcoin could rebound due to a weakening US dollar, which has recently contributed to downward pressures.

Market analyst Ali Martinez highlighted that for Bitcoin to secure a solid upward trend, it must reclaim the $93,700 level as support. He predicts that a successful recovery above this threshold could propel Bitcoin towards a peak of $110,000. As it stands, Bitcoin is trading at $85,885, reflecting a 1% decline and remaining 9% from the pivotal support level.

In conclusion, President Trump’s call for the Federal Reserve to cut interest rates has coincided with a notable increase in Bitcoin’s value. As the Fed projects future rate cuts alongside signs of potential economic recovery, analysts remain optimistic about Bitcoin’s trajectory. The cryptocurrency market is poised for growth, depending on key support levels and the overall health of the US dollar, making future developments on this front particularly significant for investors.

Original Source: thecryptobasic.com

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