Fed Reality Check Dashes Trump’s 350bps Rate Cut Fantasy - Bitcoin Stumbles as Traders Flee to Stocks

Fresh economic data just torpedoed Trump's ambitious call for 350 basis points of Fed rate cuts this year. The numbers don't lie - and they're telling a very different story than the former president's bullish dreams.

Market Whiplash

Bitcoin takes a hit while traditional equities climb. Digital gold gets hammered as traders pivot to stocks, proving once again that crypto remains the speculative little brother when conventional markets flash green.

Reality Bites

The data reveals an economy that simply doesn't need emergency-level stimulus. Inflation metrics, employment figures, and growth indicators collectively reject the notion of aggressive monetary easing. The Fed's measured approach appears justified - much to the chagrin of rate cut hopefuls.

Another day, another reminder that political wishes don't move markets - cold, hard data does. Wall Street gets its rally while crypto traders lick their wounds. Some things never change in finance - the big money always follows the numbers, not the rhetoric.

Earlier this week, the Fed’s Beige Book described a stable economy with modest price growth and business uncertainty tied to tariffs and policy outlooks, reinforcing expectations of a measured quarter-point cut in September.

San Francisco Fed President Mary Daly stated she does not support a 50 basis point move, backing gradual easing instead. Market odds have priced a near-certain reduction in the policy rate.

Bitcoin traded lower today, moving from $110,000 to $109,300, while the S&P 500 ETF gained 0.3% from 644 to 646. The divergence reflected caution in digital assets and steady demand for equities as rate expectations centered on a modest cut.