Bitcoin (BTC) surged following former US President Donald Trump's striking statements on interest rates. In a July 9th post, Trump stated that the Fed's current interest rates were "at least 300 basis points (bps) too high," arguing that delaying the rate cut would impose an additional $360 billion annual burden on the US economy. Just 30 minutes after this statement, the price of Bitcoin began to rise, quickly reaching $109,343. It then reached a record high of $112,000 on some exchanges. However, according to many platforms, it remained about $50 below the record high of $111,925.
Trump's post created a ripple effect on the market
Trump's post on Truth Social created a ripple effect on the market. According to analysts, such an interest rate cut could lead to significant jumps not only in alternative assets like Bitcoin, but also in gold, stocks, and real estate prices. Macro analysis platform The Kobeissi Letter examined Trump's calculations in a detailed X (formerly Twitter) thread on the subject. Analysts noted that total US interest payments have reached $1.2 trillion over the last 12 months, emphasizing that this sharp interest rate cut could save approximately $174 billion in the short term, but its long-term consequences could pose risks to economic stability.
According to Kobeissi, such an aggressive interest rate cut could cause a depreciation of over 10% in the US dollar, inflation exceeding 5%, and housing prices rising by up to 25%. However, in the short term, effects such as gold reaching $5,000, the S&P 500 index reaching 7,000 points, and oil exceeding $80 are also expected.
Bitcoin surpasses $111,000; is a new record on the horizon?
The technical momentum following Trump's statements caused the Bitcoin price to rise to $111,266 by the end of the day. While Bitcoin briefly broke records on exchanges like Binance, Coinbase, and Bitstamp, data providers like CoinGecko and CoinMarketCap indicate that the $112,000 peak, broken on May 22, has yet to be surpassed.
Shares of publicly traded companies linked to Bitcoin also rose. MicroStrategy (MSTR) rose 4.4% to $414. Coinbase (COIN) shares saw a 5% increase, while Bitcoin mining companies MARA and Riot saw a nearly 6% increase.
