Bitcoin jumps 5%, squeezes shorts following Trump's remarks on next Fed Chair
|- Bitcoin gains 5% following President Trump's remarks concerning the next Fed Chair.
- Trump noted that the next Fed Chair is expected to cut interest rates immediately.
- Ethereum, XRP, Solana and other top cryptos rallied alongside Bitcoin.
Bitcoin (BTC), alongside most top cryptos, saw a 5% gain on Tuesday following President Donald Trump's remarks on monetary policy in a Politico interview. The US President noted that the next Federal Reserve (Fed) Chair will be expected to lower interest rates immediately.
Trump will announce the next Fed Chair in the coming days, with White House economic advisor Kevin Hassett as the frontrunner across prediction marketplaces Polymarket and Kalshi. In a panel session at the WSJ Leadership Institute on Tuesday, Hassett highlighted that "there's plenty of room to lower rates."
The Federal Open Market Committee (FOMC) is expected to lower interest rates by 25 basis points in its meeting on Wednesday. Market experts view it as a hawkish cut, predicting the Fed will adopt a wait-and-see approach in January due to the delay in economic data caused by the government shutdown in the past few months.
Trump's remarks spark short liquidations
However, Trump's recent comments have boosted market sentiments ahead of the decision, with the crypto market seeing over $263 million in short liquidations in the past 4 hours, according to Coinglass data.
Bitcoin has crossed above $94,000 and is approaching the $95,000 mark for the first time since November 17. The top crypto's rise has spiraled into the broader digital asset market with almost every token in the top 100 trading in the green.
Ethereum (ETH), XRP, BNB and Solana (SOL) are up 8%, 4%, 3% and 6%, respectively, at the time of publication on Tuesday.
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