Bitcoin News Update: Optimistic Fed Stance Lifts Markets, While Analysts Remain Wary Over Trump Policy Proposals
- Fed rate cuts spark optimism in crypto and equities, with S&P 500 projected to rise 4%-10% by 2025 amid investor skepticism. - J.P. Morgan warns Fed may pause 2025 cuts to assess Trump-era policy impacts, diverging from Wall Street's easing expectations. - Bitcoin rebounds to $114,600 as ETF inflows drive institutional ownership to 12% of total supply, fueled by geopolitical stability and macro trends. - Binance's CZ backs crypto's macro role post-Trump pardon, while analysts caution Trump tariffs could
Expectations of an upcoming rate reduction by the Federal Reserve have sparked fresh enthusiasm in financial markets, with both stocks and cryptocurrencies gearing up for a potential rally as the year closes. Tom Lee, who serves as chairman of
Yet, this optimistic perspective is not universally held. J.P. Morgan’s team of strategists, including Karen Ward, chief market strategist for asset management, cautioned that the Fed could halt rate cuts after December to evaluate the effects of Donald Trump’s policy changes. Ward explained that although the Fed has already implemented two rate cuts in 2025, its prudent approach—highlighted by Chair Jerome Powell’s recent comments on robust economic indicators—may postpone further reductions next year. This difference from the general Wall Street outlook highlights the uncertainty surrounding how fiscal expansion and inflationary pressures could interact with central bank decisions,
reported.
At the same time, much of the Fed’s anticipated policy easing appears to have already been factored into crypto prices.
Adding to the positive sentiment, Binance’s Changpeng Zhao (CZ) expressed optimism after being granted a presidential pardon by Trump. Posting on X, CZ stated that cryptocurrency would “generate significant wealth for the nation,” echoing Trump’s executive order to establish the U.S. as a global crypto leader, as
Despite the current upswing, volatility remains a concern. The rate cut in September led to $60 billion in crypto liquidations, serving as a warning for investors. J.P. Morgan’s David Kelly cautioned that Trump’s tough stance on tariffs could conflict with the Fed’s efforts to control inflation, potentially creating new challenges. For now, though, the combination of Fed policy easing, geopolitical calm, and rising institutional participation is powering a coordinated rally across different asset types, as previously noted by Moomoo and in a
analysis.Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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