Bitcoin hits new high after Trump reiterates rate cut

Author: Mat Di Salvo Editor: far@Centreless

Bitcoin hit a record high for the second day in a row on Thursday (July 12) after pro-cryptocurrency President Trump once again called on the Federal Reserve to cut interest rates.

According to data from Coingecko, the price of Bitcoin rose to $112,599 on Thursday, setting a new record for mainstream cryptocurrencies. The price of Bitcoin rose 3.5% on the day, after its price had been in a volatile consolidation.

On Wednesday, Coinbase data showed that Bitcoin broke through $112,000 for the first time, breaking the previous record of about $111,900 set in late May.

In a post on his self-built social media platform Truth Social, Trump said that the cryptocurrency market was "breaking through the sky" and said it was time for the Federal Reserve to cut interest rates.

He wrote: "Technology stocks, industrial stocks and the Nasdaq index have all reached all-time highs!" "The Fed should quickly cut interest rates to reflect this strong momentum. The United States should be at the top of the list. No inflation!!!"

In early April this year, Bitcoin and other assets plummeted due to the new tariff policy proposed by Trump. But recently, cryptocurrencies and stocks seem to have shaken off the impact of Trump's trade policy and have hit new highs.

Previously, Trump had repeatedly criticized Federal Reserve Chairman Jerome Powell for not cutting interest rates, calling him a "loser" and "stupid" and even threatening to fire him. Powell blamed Trump's policies for failing to cut interest rates.

In order to cope with the highest inflation level in 40 years, the Federal Reserve has raised interest rates sharply starting in 2022, and both the stock market and the cryptocurrency market have been negatively affected.

Last year, the Federal Reserve began to cut interest rates, but has remained cautious about further rate cuts.

Other major cryptocurrencies also rose on Thursday. Ethereum prices once reached $2,783, up nearly 5%; Solana, ranked sixth, also rose nearly 2% and traded at around $157.

Analysts expect Bitcoin to continue to rise.

"We are likely to go higher," said Joe DiPasquale, CEO of crypto fund BitBull Capital. "Bitcoin's rise is driven by strong ETF inflows, a rebound in institutional demand and an overall risk appetite environment driven by investors' expectations of a Fed rate cut."

He continued: "Once Bitcoin broke through the key psychological level of $110,000, off-market funds quickly poured in, pushing prices to new highs. On-chain data and positions indicate that there is still room to rise, so testing higher historical highs is becoming more and more likely. However, if market sentiment shifts, prices may also experience a sharp correction."