White House Backs Potential Fed Rate Cuts Amid Growing Economic and Crypto Interest

White House Senior Advisor Kevin Hassett announced on July 31, 2025, that current economic data supports the Federal Reserve’s potential move to cut interest rates. Hassett’s statement aligns with economists’ views that such cuts could impact major cryptocurrencies, heightening attention on rate-related policy decisions.

Fed Considers Policy Adjustments Amid Economic Pressures

Current economic indicators provide the Federal Reserve with justification to consider cutting interest rates. Many economists maintain that the Federal Reserve has lagged in adjusting rates, pressing for a more rapid response. However, official responses remain careful, respecting the Fed’s independence and approach, as noted by Waller’s Insights on Economic Outlook – July 2025.

The Fed says rate cuts could begin as early as July. This is the moment markets have been waiting for.
Liquidity returns. Risk-on mode reactivates. Crypto’s next leg is loading. 🚀 pic.twitter.com/5GhA9sz4oU

— ︎ Teo Mercer (@TeoMercer) June 20, 2025

Bitcoin and Market Performance Data

Anticipated Fed rate cuts have historically led to increased crypto inflows, as seen in 2019 and 2020. Bitcoin currently trades at $117,731.68, with a market cap of approximately 2.34 trillion. Bitcoin’s dominance stands at 60.77%, witnessing a 21.59% price increase over the past 90 days. Recent trading volume is noted to be slightly down at $63 billion, according to CoinMarketCap.

Insights from the Coincu research team highlight the potential for increased market volatility as investors assess lower interest rates. Historical trends suggest cryptocurrencies may benefit in yield-seeking environments if macro liquidity rises, detailed in Coinbase derivatives on financial stability.

Near-Term Trading Outlook

Despite potential rate cuts typically benefiting risk assets, current market conditions suggest traders may remain cautious ahead of official Fed announcements. The combination of policy uncertainty and existing market pressures could lead to continued volatility in crypto markets over the coming weeks.