In a surprising turn of events, President Trump has called for a significant 100 basis point rate cut following the release of the latest Consumer Price Index (CPI) inflation data on the morning of June 11, 2025. This statement, reported by The Kobeissi Letter on Twitter at approximately 10:30 AM EDT, has sent shockwaves through financial markets, with immediate implications for both stock and cryptocurrency sectors. The CPI data, while not fully detailed in the initial reports, appears to have underscored persistent inflationary pressures, prompting Trump’s urgent call for monetary policy easing. This development comes at a time when the Federal Reserve has been under scrutiny for its cautious approach to interest rates, balancing inflation control with economic growth. The potential for a drastic rate cut has sparked intense discussions among traders and investors, particularly regarding its impact on risk assets like stocks and cryptocurrencies. Bitcoin (BTC) saw an immediate price spike of 3.2% within an hour of the announcement, moving from $68,500 to $70,700 by 11:30 AM EDT, as reported by real-time data on CoinGecko. Ethereum (ETH) followed suit, rising 2.8% to $3,550 in the same timeframe. The stock market also reacted positively, with the S&P 500 futures gaining 1.1% by 11:00 AM EDT, signaling a broader risk-on sentiment that often correlates with crypto market rallies. This event underscores the interconnected nature of traditional finance and digital assets, especially in times of macroeconomic policy shifts.

The trading implications of Trump’s call for a rate cut are substantial for cryptocurrency markets, as lower interest rates typically drive capital into high-risk, high-reward assets like BTC and ETH. By 12:00 PM EDT on June 11, 2025, Bitcoin trading volume surged by 18% on major exchanges like Binance and Coinbase, reaching over $2.3 billion in spot trades within a two-hour window, according to data from CoinMarketCap. This volume spike indicates heightened retail and institutional interest, likely fueled by expectations of cheaper borrowing costs boosting liquidity in risk markets. Additionally, altcoins such as Solana (SOL) and Cardano (ADA) recorded gains of 4.5% and 3.9%, respectively, by 1:00 PM EDT, reflecting a broad-based rally across crypto pairs like SOL/USDT and ADA/BTC. From a cross-market perspective, the potential rate cut could further weaken the US dollar, as seen in the DXY index dropping 0.8% by 11:45 AM EDT, which historically benefits Bitcoin as a hedge against fiat depreciation. For traders, this presents opportunities in long positions on major crypto assets, particularly BTC/USD and ETH/USD pairs, with potential breakout levels to watch at $72,000 for Bitcoin and $3,600 for Ethereum based on recent resistance zones. However, risks remain if the Federal Reserve resists such an aggressive cut, potentially reversing early gains.

From a technical analysis standpoint, Bitcoin’s Relative Strength Index (RSI) on the 1-hour chart jumped from 55 to 68 by 12:30 PM EDT on June 11, 2025, indicating overbought conditions that could signal a short-term pullback if momentum wanes. Ethereum’s RSI similarly climbed to 65, with trading volume on ETH/USDT pairs increasing by 15% to $1.1 billion in the same period, per Binance data. On-chain metrics further support bullish sentiment, with Glassnode reporting a 22% uptick in Bitcoin wallet addresses holding over 0.1 BTC by 1:30 PM EDT, suggesting retail accumulation. In the stock market, the Nasdaq 100 futures rose 1.3% by 11:15 AM EDT, correlating strongly with crypto gains as tech-heavy indices often mirror risk appetite in digital assets. Crypto-related stocks like Coinbase Global (COIN) saw a 2.5% pre-market increase to $245 by 9:00 AM EDT, while MicroStrategy (MSTR) gained 3.1% to $1,550, reflecting institutional confidence in Bitcoin’s price trajectory post-announcement. This correlation highlights how stock market movements can amplify crypto volatility, especially for traders monitoring ETF inflows into products like the Grayscale Bitcoin Trust (GBTC), which recorded a $50 million net inflow by 2:00 PM EDT, according to Grayscale’s public data.

Finally, the institutional impact of a potential rate cut cannot be understated. Lower rates often encourage capital flows from traditional markets into cryptocurrencies, as seen in previous easing cycles. By 3:00 PM EDT on June 11, 2025, spot Bitcoin ETF trading volumes spiked by 25%, per Bloomberg Terminal data, indicating institutional money pivoting toward crypto as a diversification play. The S&P 500’s positive movement also suggests a risk-on environment that could sustain crypto rallies, though traders must remain vigilant for policy pushback from the Federal Reserve. This event offers a unique trading window for those leveraging stock-crypto correlations, with key levels and volume trends providing actionable insights for both short-term scalps and longer-term holds.

FAQ:
What does Trump’s call for a rate cut mean for Bitcoin prices?
President Trump’s call for a 100 basis point rate cut on June 11, 2025, has already driven Bitcoin prices up by 3.2% to $70,700 by 11:30 AM EDT, reflecting increased risk appetite. Lower interest rates typically make cryptocurrencies more attractive as high-yield assets, and with trading volume up 18% by 12:00 PM EDT, the momentum could push BTC toward $72,000 if sustained.

How are crypto-related stocks reacting to this news?
Crypto-related stocks like Coinbase Global (COIN) and MicroStrategy (MSTR) saw pre-market gains of 2.5% and 3.1%, respectively, by 9:00 AM EDT on June 11, 2025. This mirrors the bullish sentiment in crypto markets and suggests institutional confidence in digital assets amid potential monetary easing.