- Bitcoin Price has surged about 50% over the past year and now holds above $100,000.
- Former President Donald Trump predicted large-scale Bitcoin and crypto investment while again criticizing Federal Reserve chair Jerome Powell for maintaining high interest rates.
- A recent U.S. Senate crypto bill is projected to release trillions of dollars into the market.
- The Federal Reserve has paused on further rate cuts amid uncertainty but signaled two possible decreases this year.
- Bitcoin’s performance during recent market instability has strengthened its image as a “safe-haven” asset, according to crypto investment specialists.
Bitcoin has climbed about 50% from its lows in April and is currently trading above $100,000. The rise comes as Donald Trump forecasts major investments in bitcoin and other cryptocurrencies, while voicing criticism of Federal Reserve chair Jerome Powell over interest rate policies.
The U.S. Senate recently approved a cryptocurrency-related bill expected to unlock trillions of dollars for the market. At the same time, debate around interest rates continues as U.S. national debt rises above $37 trillion. Trump has publicly criticized Powell’s approach, saying high interest rates cost the U.S. economy $1 trillion per year in interest.
In a statement on his Truth Social account, Trump called Powell a “moron” and questioned the Federal Reserve’s current direction. Trump added, “I fully understand that my strong criticism of him makes it more difficult for him to do what he should be doing, lowering rates, but I’ve tried it all different ways.” Trump also confirmed a decision on the next Fed chair will be announced soon, repeating concerns about the impact of high rates.
The Federal Reserve has kept rates steady after beginning a reduction cycle last September, pausing due to concerns that new trade tariffs could spur inflation. However, Fed governor Christopher Waller stated in an interview with CNBC that he does not expect tariffs to push inflation higher and suggested rate cuts could begin as early as July. CME FedWatch puts the chances of a July cut at 10% (source).
Elliot Johnson, CEO of the Bitcoin Treasury Corporation, stated by email, “the [Federal Reserve] dot plot was somewhat of a relief, with projections of two rate cuts this year alleviating fears of no more cuts at all in 2025.” Johnson noted that bitcoin’s strength signals both resilience and its potential as a long-term asset in light of the devaluing U.S. dollar.
David Hernandez, a crypto specialist at 21Shares, commented via email, “bitcoin’s fundamental properties—its scarcity, decentralization, and neutrality—make it an increasingly relevant and compelling asset for investors navigating an uncertain future.” Hernandez noted bitcoin’s ability to remain above $100,000 and cited its sustained adoption during economic and geopolitical disruptions.
Lower interest rates often support risk assets such as cryptocurrencies and technology stocks because they make it easier for money to flow into these markets. Bitcoin’s recent rise and stability during market volatility have increased its profile as a safe-haven, according to industry analysts.
The Federal Reserve has indicated that it could make two rate cuts this year, while continued market uncertainty and rising debt keep crypto assets like bitcoin in focus among investors seeking alternatives.
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