Bitcoin Surges 10% as Trump Pushes for Rate Cuts, XRP Jumps 12% on Legal Victory

Bitcoin's price surged towards $86,000 as traders responded to President Donald Trump's renewed advocacy for interest rate cuts. Trump, via his platform Truth Social, urged the Federal Reserve to reduce rates, asserting that this move would be beneficial as U.S. tariffs begin to impact the economy. He emphasized the importance of the Fed's decision, stating, “The Fed would be MUCH better off CUTTING RATES as U.S. tariffs start to transition into the economy. Do the right thing. April 2nd is Liberation Day in America!”

The Federal Open Market Committee (FOMC) maintained steady rates but revised downward its growth projections until 2027. This adjustment sparked speculation about the Fed's future actions. Concurrently, Robbie Mitchnick, the head of digital assets at BlackRock, suggested that a potential recession could serve as a significant catalyst for Bitcoin. He noted that Bitcoin tends to thrive in environments characterized by low interest rates and high spending.

XRP experienced a notable surge, initially jumping by 12% before stabilizing at a 10% gain. This rally was triggered by Ripple Labs' announcement that its legal battle with the Securities and Exchange Commission (SEC) had concluded. The momentum continued with Bitnomial's declaration of the first-ever CFTC-regulated XRP futures in the U.S., scheduled to launch on Thursday.

Despite the positive developments, traders remained cautious. Jeff Mei, the COO of BTSE, cautioned that the recent gains could be a temporary relief bounce following five weeks of market declines. With Trump's push for rate cuts and improving regulatory clarity, both Bitcoin and XRP are poised for more significant movements in the near future.