Trump calls for interest rates to drop to 1%! Expectations for a rate cut in September soar, Bitcoin breaks through $124,000 to set a new historical high.

U.S. President Trump once again made strong statements regarding interest rate policies, stating that interest rates should be lowered to 1%, and hinted at the early appointment of a new Federal Reserve chair who supports rate cuts. With the probability of a rate cut in September soaring to 99.9%, market risk appetite has sharply increased, and Bitcoin (BTC) has broken through the $124,000 mark, setting a new historical record and driving the overall crypto assets market higher.

Trump Pressures The Federal Reserve (FED): Interest Rate Should Be Reduced to 1%

During his visit to the Kennedy Center, Trump stated that U.S. interest rates should be lowered by 3-4 percentage points to 1% to stimulate economic growth. He criticized the Federal Reserve's refusal to lower rates and revealed that he would appoint Powell's successor ahead of schedule, with the candidate list narrowed down to three to four people, which may include someone who "fully supports lowering rates."

Currently, Chris Waller is seen as the most popular successor, followed by Kevin Warsh and Kevin Hassett.

September interest rate cut expectations surge to 99.9%

(Source: CME Fed Watch)

According to the CME Fed Watch Tool, the market expects a 99.9% chance that The Federal Reserve (FED) will cut interest rates by 25 basis points at the September meeting, while the likelihood of keeping the interest rate unchanged is only 0.1%.

U.S. Treasury Secretary Scott Bessent even called for a direct interest rate cut of 50 basis points in September, believing that interest rates should be lowered by a total of 150–175 basis points. He pointed out that the slowdown in employment data is a key reason for the rate cut—July's non-farm payrolls only added 73,000, far below the expected 147,000.

Bitcoin breaks through 123,000 USD to reach a new high

Driven by expectations of interest rate cuts and the sentiment towards risk assets, the price of Bitcoin strongly broke through $123,000, reaching a high of $123,600, setting a new historical record.

This wave of price increase has not only made BTC the sixth largest asset by market capitalization globally, surpassing Google and Amazon, with a market value only behind gold, Nvidia, Microsoft, and Apple, but has also driven mainstream coins like Ethereum (ETH) to rise in sync—ETH has increased over 28% in the past seven days, nearing a high of 4,891 dollars.

The Significance of Interest Rate Cuts on the Crypto Market

Interest rate cuts usually mean increased market liquidity and lower borrowing costs, which is beneficial for high-risk assets like Crypto Assets.

Analysts point out that if the interest rate is really cut by 25-50 basis points in September, BTC may enter a price discovery phase, challenging higher target levels. However, there are also views that after reaching a new high, Bitcoin may face a technical correction to build momentum for subsequent rises.

Conclusion

Trump's comments on interest rate cuts, along with the market's high expectations for September's easing policy, are driving Bitcoin and the overall crypto market into a new frenzy. If the Federal Reserve (FED) cuts interest rates as expected in the September meeting, BTC may accelerate to break new highs, leading mainstream coins like ETH to also challenge historical records. For more real-time market data and in-depth analysis, please follow the official Gate platform.