President Donald Trump brushed aside concerns over Thursday’s hotter-than-expected U.S. Producer Price Index (PPI), calling inflation “hardly any at all” and pointing to surging 401(k) balances and stock market gains.
His remarks boosted hopes that the Federal Reserve could cut interest rates in September.
The PPI data, however, suggested next month’s Consumer Price Index (CPI) could also run hot, raising fears the Fed might hold its benchmark rate at 4.5%. Those worries triggered over $1 billion in liquidations across the crypto leveraged market, with long traders taking the biggest hit — more than $827 million, according to CoinGlass.
Rate Cut Odds Rise Despite Data
Kalshi market data shows the probability of a 25 bps rate cut in September jumped to 81%. Traders now see an 11% chance of a 50 bps cut — slightly higher than the odds of no cut at all, which sit at 10%.
Bull Market Sentiment Intact
Despite the volatility, sentiment in crypto remains bullish. Bitcoin and Ethereum have rebounded, and institutional demand continues to grow as more companies adopt crypto treasury strategies. That optimism was further fueled by Trump’s recent executive order allowing 401(k) retirement plans — holding more than $8 trillion in assets — to invest in cryptocurrencies.
With macro factors, political support, and institutional flows aligning, traders are watching closely to see whether September’s Fed decision will provide another catalyst for the ongoing bull market.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/trump-shrugs-off-inflation-fears-as-crypto-traders-lose-1b/