Recently, Trump's public call for interest rate cuts has sparked a strong reaction in the Crypto Assets community, with market expectations that Bitcoin may hit a high of $110,000.

Interest rate cuts will bring liquidity stimulation to the market. Trump's logic is that lowering borrowing costs can promote corporate and individual investment willingness, while also alleviating the government's debt burden. If the Federal Reserve adopts this suggestion, increased market liquidity may lead to some funds flowing into high-risk assets such as Bitcoin. It is worth recalling that during the period of quantitative easing implemented by the Federal Reserve in 2020, Bitcoin rose from $5000 to $65,000. Currently, the price of Bitcoin is fluctuating in the $106,000 range, and the interest rate cut policy may trigger a new round of increases.

Interest rate cut policies usually weaken the dollar, while Bitcoin, as "digital gold," is often seen as an anti-inflation tool. Although the US CPI data came in below expectations, indicating a temporary easing of inflationary pressures, the tariff policies proposed by Trump may drive up price levels in the future. If expectations of dollar depreciation increase, investors may be more inclined to use Bitcoin as a safe-haven asset, especially when institutional funds are supported by ETFs.

Financial markets have begun to anticipate the Fed's actions, and while the probability of a rate cut in June is extremely low, traders generally believe that the probability of a rate cut in September is as high as 75%. Trump's remarks will undoubtedly heighten market sensitivity. In the short term, Bitcoin could test the $110,000 pressure level, but if the Fed takes a firm stance, the price could also fall back to the $103,000 support level. On-chain data shows a significant increase in the recent activity of large capital holders, which may indicate that the market is about to see wild swings.

However, investors should not ignore the potential risks. Tensions between Trump and Fed Chair Jerome Powell are long-standing, and Powell is likely to stick to no rate cuts in order to preserve the central bank's independence. A rate cut could also trigger an asset bubble, and there are dissenting voices within the Fed. If inflation data unexpectedly picks up, or if Trump's tariffs lead to a sharp rise in prices, the Fed may tighten measures, which will have a negative impact on the Bitcoin price.

As the market situation continues to evolve, investors need to closely monitor various economic indicators and policy trends, and rationally grasp investment opportunities.