Trump says Bitcoin and tech boom show US economy is back, urges Fed to cut rates
Key Takeaways
- Trump highlights surging US tech stocks and Bitcoin as signs of economic strength.
- He urges the Federal Reserve to cut interest rates, crediting tariffs and trade policies for the boom.
With tech stocks soaring and Bitcoin hitting fresh highs, President Trump is renewing pressure on the central bank to ease monetary policy, framing market performance as a sign of economic strength.
Bitcoin reached a new all-time high above $112,000 on Wednesday amid increasing global demand for digital assets. The surge also pushed the overall crypto market capitalization back up to $3.4 trillion, a peak last seen in June 2025.
Despite recent gains, the total market value is still below the December 2024 record of $3.7 trillion. Bitcoin was trading at around $111,300 at the time of writing, per TradingView .
Trump has repeatedly urged the Fed to lower interest rates, but markets see little chance of a cut before September. The central bank has kept its benchmark rate steady at 4.25%–4.50% since December 2024.
While policymakers indicated in June the potential for two cuts by the end of the year, there was no agreement on near-term action.
Market pricing now reflects less than a 7% chance of a rate cut at the upcoming July 29–30 meeting, according to data from CME FedWatch.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Hashrate orders are booming, why is "AI trading" falling out of favor? JPMorgan reveals the time lag between AI investment and productivity realization
Joseph Lupton from the JP Morgan Global Economic Research Team pointed out in a research report on November 10 that recent improvements in labor productivity have been driven more by capital deepening and increased intensity of factor utilization. The broad efficiency gains from AI, resulting from process reconstruction, data integration, and organizational adjustments, will still take time to materialize. This means orders for chips, servers, and electrical equipment may grow first, but continuous investment returns for computing power operators and end users may not arrive at the same pace.
AI investment enters the "Trough of Disillusionment", the next 18 months will be a life-or-death test!
Goldman Sachs believes that the AI investment cycle is currently in the "trough of disillusionment," but this is not the first time. The core contradiction lies in the fact that the business models of new cloud computing providers are highly dependent on end-user returns from AI spending, while currently "there are basically zero companies that can attribute profits to AI." Social Capital founder Palihapitiya has clearly defined an 18-month key window, during which the market will decide which AI business models are sustainable and which are not.
Anthropic's Core Concern: Revenue Can Be Withdrawn at Any Time, but Computing Power Costs Are Locked in for up to 20 Years
Zheshang Securities believes that Anthropic's revenue is mainly based on usage-based billing, with remaining performance obligations covering only about 5.1 months of annualized revenue, while compute power costs are already locked in with $895.4 billion in irrevocable commitments, some extending as far as 2045. Revenues can be reduced at any time, but costs are non-exitable, creating a highly asymmetric maturity gap between the two—this is the company's real core constraint.
Triple Pressure from the Federal Reserve, Treasury, and Congress; Goldman Sachs: Liquidity Crisis May Occur in 2027
Goldman Sachs warns that the reserve ratio of bank assets has dropped to around 11%, only slightly above the crisis trough of 2019. In the second half of 2027, a deadlock in debt ceiling negotiations will force the Treasury to rebuild the TGA, triggering a "perfect storm" of a sharp drop in reserves and a surge in T-bill supply; combined with stalled money market fund buying, this will create a huge liquidity black hole. The Federal Reserve could be forced into the awkward position of lowering interest rates and launching large-scale bond purchases to rescue the market.
Crypto prices
More
