Would a Jumbo-Sized Rate Cut Spike Inflation and Serve as ‘Jet Fuel’ for Crypto?

According to the technical analysis of Coindesk Research Bitcoin, it increased to $ 109,343, which is 0.8% by 0.8%.

In Truth Social Post at 10:00 am Et, Trump said that the rate of US federal funds is “at least 3 points too high” with reference to 300 basis points (3%) shear. He claimed that the delay of such a step imposes an annual burden of $ 360 billion at refinancing costs. Within 30 minutes, the BTC began to rise constantly when traders seemed to be short -term due to such a dramatic shift in policy, including the potential of renewed liquidity and risk sentiment.

In a complex fiber on xMakro analysts in a letter Kobeiss have detailed disorders of Trump’s claim. According to their analysis, total US interest payments in the last 12 months have reached $ 1.2 trillion – equivalent to $ 3.3 billion a day.

They noted that while Trump’s mathematics assumes savings of $ 360 billion at a percentage point at $ 36 trillion in national debt, only about $ 29 trillion is publicly held and will be influenced by rates. According to more realistic assumptions, they estimate that a total reduction in $ 300, which is gradually applied, could reduce interest costs by about $ 174 billion in the first year, which potentially refinances over five years over five years over five years over five years.

Despite these potential savings, the report warned that the wider economic consequences of 3% of the cut would be historical. No reduction in feed rate in modern history has exceeded 100 basis points – even during the 2008 crisis or March 2020 emergency steps. Implementation of a reduction in 300 bps outside the recession, in an economy growing to 3.8% per year, would not be unprecedented.

The letter Kobeissi warned that such a step was likely to intervene over 5%, which triggers a sharp decline in the US dollar – potentially exceeding 10% – and causes housing prices due to a sharp decline in mortgage rates. Asset markets would probably be gathered in the short term, and gold assumes to hit $ 5,000, oil over $ 80 per barrel, and a 500 S&P 500 violates 7,000. However, they stressed that long -term consequences would be destabilizing without a significant reduction in US government.

In bitcoins, the consequences are clear: a sudden drop in interest rates would be considered a monetary stimulus, probably an accelerating influx of capital into hard assets and alternative trades of value such as BTC. While analysts continue to discuss the likelihood of such cuts, the immediate reaction of the market suggests that investors are located at risk.

Emphasizing technical analysis

• The BTC price was sharply within 30 minutes of Trump’s Trump’s Social Contribution at 10:00 in the morning.
• Consolidation persisted earlier during the day, but the purchasing volume increased significantly after Trump’s comments.
• The price tested resistance almost $ 109,761, with higher minimums is over $ 108,500, which indicates the bull structure.
• The Bollinger band compressed at their strictest level in this cycle, historically the signal of the waiting escape.
• Institutional accumulation remains visible through volume clusters near the support zones around $ 108,500 – 108 600.

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