Trump Urges Fed to Slash Rates — Could This Be the Catalyst for Bitcoin's Next All-Time High?

Sydney, 11 June 2025 — Former US President Donald Trump has once again criticised the Federal Reserve’s current interest rate policy, calling for an immediate and significant rate cut to ease the burden of national debt and stimulate economic activity.

In a post on his platform Truth Social on Friday (6 June), Trump said:

“If the Fed remains ‘too slow’, it could be a disaster. Europe has already cut rates ten times, while we haven’t done anything. Yet our economy remains strong. The Fed should immediately slash rates by a full point — it would be a major boost for the economy.”

Trump added that if inflation reappears down the line, the Fed could simply raise rates again. For now, however, he believes borrowing costs should be significantly lower, urging policymakers to act swiftly.

This statement comes amid a backdrop of growing speculation that the Fed may consider a rate cut later this year, especially as borrowing costs put increasing strain on both consumers and the federal budget.

Interestingly, history has shown a strong correlation between rate cuts and Bitcoin price surges. For instance, in March 2020, the Fed slashed interest rates to near-zero in response to the pandemic. Shortly after, Bitcoin rallied from around US$6,000 to a then-record high of US$67,000 by November 2021.

A similar scenario unfolded in mid-2019. As markets began pricing in a rate cut, Bitcoin jumped from US$4,000 to US$13,000 within months. Although the price corrected briefly after the cut was implemented, it eventually continued its upward trajectory.

This trend is tied to how rate cuts increase market liquidity and prompt investors to seek alternative, high-yielding assets — Bitcoin being a prime candidate. Lower interest rates often lead to fears of inflation, and in turn, investors turn to Bitcoin as a hedge against devaluing fiat currencies.

With Trump ramping up political pressure on the Federal Reserve, analysts say a rate cut could reignite bullish momentum across the crypto market.

“If the Fed caves to pressure and cuts rates, expect Bitcoin to react swiftly,” said Ella Dawson, a senior strategist at CoinWatch Australia. “It could breach its all-time high and push into uncharted territory.”

While nothing is guaranteed in crypto markets, the historical relationship between monetary easing and digital asset growth is difficult to ignore. Whether the Fed responds or not, the growing narrative linking macroeconomic policy with crypto performance is gaining ground fast.

For now, investors will be watching closely — not just the charts, but also the headlines from Washington and Wall Street.

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