- Bitcoin surged to an all-time high near $119,000, lifting the overall cryptocurrency market value close to $4 trillion.
- A post from Elon Musk and calls from Donald Trump for lower U.S. interest rates contributed to increased momentum in the crypto sector.
- Major digital assets including Ethereum and Ripple’s XRP experienced significant weekly gains of around 20% and 30%, respectively.
- Investors expect the Federal Reserve to keep rates on hold at its upcoming July meeting, while speculation of future rate cuts grows.
- Institutional buying through U.S. exchange-traded funds (ETFs) and corporate treasury allocations has played a key role in the current price rally.
Bitcoin prices climbed sharply this week after Elon Musk confirmed market rumors and Donald Trump urged the Federal Reserve to lower interest rates rapidly in the United States. The price of bitcoin reached a new high of nearly $119,000, pushing other digital currencies such as Ethereum and Ripple’s XRP higher and bringing the total market capitalization close to $4 trillion.
According to public posts from Donald Trump on Truth Social, he stated the Federal Reserve should act quickly to reduce interest rates, noting there is “no inflation.” In the last week, Ethereum has gained about 20%, while XRP is up nearly 30%, despite the Federal Reserve leaving rates unchanged so far this year. Market tracking tools show that investors overwhelmingly anticipate the Fed to maintain its current interest policy at the July meeting, though many now expect a cut in September.
“Crypto, ‘through the roof,’” Trump posted, highlighting his stance that economic conditions now support a move by the central bank. He has previously called for a major rate cut, suggesting interest rates should decrease by “at least two to three points,” in order to save the country billions on debt servicing. Fed Chair Jerome Powell has kept rates steady, pausing a prior reduction cycle due to concerns that global trade tariffs could drive inflation, a trend not yet seen in recent data.
Market experts connect this latest rally to multiple factors. “Signals of forthcoming Fed rate cuts have buoyed investor sentiment, given that a cut is now more likely than ever and greatly needed,” said James Toledano of Unity Wallet. Analysts from Tagus Capital pointed to ongoing inflows into U.S. spot exchange-traded funds (ETFs), significant corporate treasury acquisitions, and a weakening U.S. dollar as additional drivers.
Large-scale purchases by ETF managers and companies, such as those led by Michael Saylor’s firm, have tightened available supply and inspired others to make similar moves with assets like Ethereum and XRP. “The price surge we’ve seen [this week] is seemingly driven by a confluence of macroeconomic optimism and significant institutional activity in the form of ETF inflows and sovereign and corporate balance sheet allocations,” Toledano added.
The crypto market has recovered roughly $1.2 trillion since April, bringing it within $250 billion of hitting a $4 trillion market cap. While institutional involvement has fueled recent gains, the broader impact of future Federal Reserve decisions remains in focus for investors.
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