What is the situation with the interest rate cut on September 18?

Trump's "significant interest rate cut" calls stir the market, the Federal Reserve's interest rate decision week becomes a watershed moment for the cryptocurrency market.

Recently, Trump suddenly threw out the statement of "significant interest rate cuts," instantly stirring up a storm in the financial markets and making the upcoming Federal Reserve meeting this week full of suspense. In the past, the market generally expected the Federal Reserve to conduct a routine 25 basis points rate cut operation; however, Trump's emphasis on the word "significant" directly intensified the game of tug-of-war between bulls and bears.

The Federal Reserve's decision is crucial for the cryptocurrency market. Once an unexpected 50 basis point rate cut is realized, the crypto market may usher in a "straight-up" explosive行情. Even with just a 25 basis point cut, as long as the Federal Reserve releases a clear signal that there is still room for rate cuts within the year, the upward trend of mainstream cryptocurrencies like Bitcoin and Ethereum is likely to continue.

This week, the cryptocurrency market needs to focus on two core variables. The first is the scale of interest rate cuts; a larger-than-expected cut would undoubtedly be a "heavyweight positive," while a 25 basis point cut that meets market expectations can also act as a "tonic" to inject vitality into the market. The second is the Federal Reserve's statements on future liquidity policies, which will directly determine the sustainability of the market situation. Currently, many institutions have quietly increased their holdings in crypto assets via ETFs. If the Federal Reserve further relaxes liquidity, we might see significant progress towards Bitcoin hitting the $120,000 target and Ethereum breaking the $5,000 mark this week.

However, the market cannot ignore the potential risks. There is a natural contradiction between Trump's "pressure" and the Federal Reserve's consistent emphasis on "policy independence". If the Federal Reserve ultimately only implements a 25 basis point rate cut and lacks indications of subsequent easing policies, the crypto market is likely to trigger a "buy the rumor, sell the news" pullback. After all, market sentiment is often fragile, and once expectations are dashed, panic selling by investors may lead to significant volatility in the market.

Based on past experience, Trump's statements and decisions regarding cryptocurrency have had a significant impact on the market. As early as during the 2024 presidential campaign, he proposed to promote Bitcoin as a strategic reserve asset for the United States. Subsequently, Bitcoin started a new round of strong momentum in September 2024, breaking through several key levels, and in December of that year, it surpassed the $100,000 mark, even approaching $110,000 in January 2025. Trump's recent call for "substantial interest rate cuts" has undoubtedly drawn the attention of global investors once again.

Ultimately, the Federal Reserve's policy actions this week will determine whether it acts as a "booster" for the crypto bull market, allowing the market to continue its upward momentum, or whether it puts the brakes on the current situation, triggering a market adjustment. The key lies in the strength and direction of this round of "interest rate control". Investors are closely monitoring the Federal Reserve's every move, preparing for the impending market changes.

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