The cryptocurrency market is witnessing another strong rally led by Bitcoin (BTC) and Ethereum (ETH), and this time the trigger is a surprising political move. On July 9, 2025, U.S. President Donald Trump made an unexpected public statement urging the Federal Reserve to implement aggressive interest rate cuts. This call for monetary easing sent shockwaves across financial markets — and crypto was among the biggest winners.
Trump calls for aggressive rate cuts
In a post shared on his platform, Truth Social, President Trump demanded that the Federal Reserve cut interest rates “immediately and aggressively.” He argued that current rates are “at least 3 points too high” and are hurting the U.S. economy.
Although no official policy has changed yet, Trump’s statement had an instant impact on market sentiment. Investors interpreted his comments as a potential signal for future rate cuts, which would lower the cost of borrowing and increase the appeal of riskier assets — including cryptocurrencies like Bitcoin and Ethereum.
Bitcoin hits new all-time high above $112,000
Within minutes of the reveal , Bitcoin’s price surged past $112,000, setting a new all-time high. This rally came after weeks of sideways movement and price consolidation just below $110,000. Bitcoin had struggled to break out of its previous resistance levels, but Trump’s unexpected push for monetary easing appears to have jolted the market out of its slump.
According to CoinMarketCap data, Bitcoin’s price rose over 2.2% in 24 hours, peaking at $112,000 before settling around $111,173 at the time of writing. The sudden price surge wiped out hundreds of millions in short positions across crypto derivatives markets, signaling renewed bullish sentiment.
Ethereum follows Bitcoin with strong 5% gains
Just like Bitcoin, Ethereum also enjoyed a solid rally. ETH prices jumped nearly 5% to reach $2,746 — the highest level recorded in nearly a month. Traders and investors quickly moved capital into Ethereum, anticipating a broader market uptrend and looking to capitalize on the momentum.
Ethereum’s rally was not just a result of Bitcoin’s rise. Recent market reports indicate growing institutional interest in ETH, especially with developments around spot Ethereum ETFs and staking potential. Together with macroeconomic tailwinds, these trends are adding confidence to Ethereum’s future price growth.
Altcoins join the party
Beyond Bitcoin and Ethereum, several other cryptocurrencies also surged. XRP, Cardano (ADA), and Solana (SOL) all posted 4–6% gains in the past 24 hours. The entire crypto market capitalization increased significantly, reflecting renewed optimism across digital assets.
Analysts say this kind of broad market rally is common during periods of positive macroeconomic developments. When Bitcoin gains momentum, it often lifts the entire crypto market, and this time was no different.
Why do rate cuts matter for crypto?
Rate cuts lower borrowing costs, making it cheaper to access money. This often drives more investment into risk assets like stocks and cryptocurrencies. On the other hand, higher rates generally make saving more attractive and reduce speculative investing.
Trump’s rate cut proposal, even though unofficial, created expectations that the Federal Reserve might be pressured into easing monetary policy ahead of the 2026 election. If such cuts are actually implemented, they could boost Bitcoin and Ethereum even further as traders and institutions increase their exposure to digital assets.
Market sentiment flips to bullish
Until recently, many investors were cautious. Bitcoin had stalled below resistance levels, and Ethereum had been under pressure from declining network activity. But with this new macroeconomic catalyst, the mood has shifted dramatically.
Trading volumes on crypto exchanges have surged. Open interest in Bitcoin futures has risen, showing that more traders are entering the market expecting higher prices. Ethereum, too, has seen a spike in inflows from institutional platforms.
Conclusion: Trump’s influence sends crypto flying
President Trump’s influence on the financial world continues to grow, especially in the crypto space. His latest call for rate cuts may not be an official policy shift, but it has already sparked a powerful rally in Bitcoin, Ethereum, and the broader crypto market.
As traders eye the Federal Reserve’s next move, all signs point toward increased volatility and upside potential. If Bitcoin continues to hold above $110,000 and Ethereum sustains its current momentum, we may be witnessing the early stages of another bull run — all kicked off by a single presidential post.
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