Recently, the crypto world has been rattled again by the Federal Reserve topic. Trump publicly called on the Fed to follow suit and cut interest rates when the stock market rises, which has caused quite a stir on Wall Street and in the crypto market.



Honestly, the logic behind this isn't complicated. The Fed's interest rate policy directly determines where money flows. Think about it—when interest rates are high, traditional financial products offer good returns, and large funds naturally flow back into safe assets like stocks and bonds. But once the Fed starts cutting rates, the situation reverses—money has nowhere to go, so it begins seeking yield opportunities. The crypto market, as a higher-risk but potentially higher-reward option, naturally attracts a wave of capital inflows.

During a rate-cutting cycle, increased liquidity means what for cryptocurrencies? Simply put, it creates fertile ground for price increases. Historical data repeatedly confirms this. Conversely, if high interest rates are maintained, funds comfortably stay in traditional finance, and the crypto market faces pressure.

The current question is whether Trump's words can truly shake the Fed. Historically, political pressure and market expectations often indirectly influence policy implementation. Even with the Fed's independence, once market expectations of easing policies form, they can drive capital flows to adjust accordingly. In this sensitive period, the crypto market is especially sensitive to macro policy shifts; even slight changes in interest rate expectations can trigger price volatility.
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DegenTherapistvip
· 11h ago
When the rate cut expectation is announced, someone goes all in. Will this really take off this time? Feels like it's always the same story every time. If the Federal Reserve really listened to Trump, I’d be surprised. By the way, how much political pressure can really change things? Liquidity sounds good in theory, but how much actually reaches the accounts? Hmm, I’ll just watch and not play mind games anymore. The logic in the crypto world seems to repeat every cycle. Getting a bit tired of it, right? Instead of guessing what the Federal Reserve will do, better ask yourself how much you can buy the dip. Does the market really rise just because Trump calls for it? Feels like it’s not that obedient. If a rate cut really happens, it often results in chaos. Those who have experienced it know.
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GweiWatchervip
· 01-16 21:00
Everyone is waiting for interest rate cuts, but it might just be an illusion. The Federal Reserve's dovish stance will ultimately depend on inflation data.
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liquidation_watchervip
· 01-16 04:56
Coming back with the same routine? I have to admit, Trump's trash talk ability is impressive. Will the Federal Reserve really listen to him? That's funny. Once the rate cut expectations are confirmed, will this wave of capital inflow be just an illusion, trapping retail investors? Increased liquidity = rising coin prices. This logic seems too straightforward. Will history necessarily repeat itself? Honestly, it's just a gamble that the Federal Reserve will be led by market expectations. What will we do when we wake up to reality? Instead of paying attention to Trump's nonsense, it's better to look at the real fund links. Which institutions are currently entering the market?
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PessimisticOraclevip
· 01-16 04:55
Here we go again? Trump’s trash talk about the Federal Reserve, and the crypto circle starts to celebrate. I’m already tired of it. The rate cut indeed brings money in, but don’t celebrate too early; the first to die among risk assets is also crypto. Can political pressure really change policy? Wake up, everyone. This time, only after a fall can we wake up.
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MercilessHalalvip
· 01-16 04:54
The expectation of interest rate cuts, to put it simply, depends on whether the Federal Reserve is willing to go along with it. No matter how loudly Trump shouts, it might not make a difference. I'm really worried that the market will hype up expectations, but the policy won't follow through—that's the most heartbreaking part. Wait, isn't this the same logic every time? Why do I feel like the crypto world is shouting about rate cuts every day? Speaking of which, no one can predict the current pace. Anyway, I'm just here to watch the show. When rate cuts happen, money naturally flows into risk assets. That's correct, but the problem is the time lag—it's tightly constrained. Trump's pressure is interesting; I'm just worried about how the Federal Reserve will respond.
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LightningSentryvip
· 01-16 04:47
The expectation of interest rate cuts is making me restless. How many times has this happened in history? Can't you recognize it?
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BankruptcyArtistvip
· 01-16 04:40
Lowering interest rates is real, but whether Trump can really get the Federal Reserve to do so is uncertain. It feels like the same old hype again.
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