Bitcoin News Update: Trump Whale Wagers $430M on Fed Policy Changes and Global Political Shifts
A prominent cryptocurrency whale associated with Donald Trump has significantly increased its short exposure in
The Federal Reserve is widely expected to cut rates by 25 basis points, with prediction markets assigning a 98% likelihood, according to
At the same time, stablecoin movement points to growing optimism in the crypto sector. The Stablecoin Supply Ratio (SSR), which measures stablecoin liquidity relative to Bitcoin’s market value, is at cycle lows, suggesting there is sidelined capital ready to flow back into the market, as highlighted by Bitcoinist. This, combined with the Fed’s dovish approach, has sparked hopes for a strong “Uptober” rally. “Lower interest rates make capital cheaper, channeling liquidity into riskier assets like Bitcoin,” said Gracy Chen, CEO of Bitget.
Yet, the whale’s trading timing has raised questions. Observers point out that its moves often coincide with major geopolitical or economic events, such as Trump’s recent proposal for 100% tariffs on Chinese imports, which led to a $19 billion market drop in late October—a trend first pointed out by Yahoo Finance. On the other hand, supporters claim the trader’s ability to interpret market sentiment and structure validates its approach.
The political environment further complicates the outlook. The Trump-Xi summit on October 30 could either boost risk appetite if trade negotiations go well or prompt a sell-off if new tariffs are introduced, according to
Meanwhile, institutional interest in crypto continues to grow. Last week, spot Bitcoin and Ethereum ETFs saw inflows of $149 million and $133 million, respectively, according to
With the Fed’s decision approaching, market participants remain vigilant. “The rate cut is likely already reflected in prices, but the real game-changer will be if QT ends,” said Jonathan Rose of BlockTrust IRA in
