Trump Signals Possible 1% Rates — Market Strategist Says XRP Could Rally
A market strategist, Levi Rietveld of Crypto Crusaders, reacted to a video-posted comment attributed to Donald Trump suggesting U.S. interest rates should be cut to 1% or lower next year. Rietveld argued that such a shift in monetary policy could rekindle strong capital flows into high-risk crypto assets, citing the 2020 era of sub-1% rates and quantitative easing that helped drive major rallies in Bitcoin, Solana and XRP. He noted important structural changes since 2020 — notably Ripple’s favorable legal outcome with the SEC and expanding institutional adoption and exchange-traded access for XRP — which could amplify XRP’s response to renewed liquidity. The strategist cautioned that Trump’s remarks are political commentary, not Federal Reserve policy, but emphasized that expectations alone can move markets. Traders are advised to watch macro signals (rate decisions, inflation, employment), liquidity, and institutional flows; if rates fall materially toward 1%, the combination of regulatory clarity and liquidity could be a powerful catalyst for XRP.
Bullish
Trump’s public call for much lower interest rates raises market expectations of future liquidity expansion. Historically, periods of ultra-low rates and quantitative easing (e.g., 2020) correlated with large inflows into speculative crypto assets and strong rallies in BTC, SOL and XRP. This article pairs that macro signal with improved structural fundamentals for XRP — notably Ripple’s favorable SEC outcome and broader institutional access — which increases the likelihood that XRP would benefit more than in prior cycles. Short-term effects: heightened volatility and speculative positioning as traders front-run potential policy shifts and respond to newsflow. Long-term effects: if rates actually fall and liquidity returns, XRP could see sustained inflows from payments-focused institutional use and exchange-traded products, reinforcing a bullish thesis. However, this is contingent on policy action (Fed decisions), macro data (inflation, jobs), and risk sentiment; political statements alone can move prices briefly but do not guarantee sustained trends. Similar precedents: 2020–2021 rate/liquidity-driven crypto bull run and post-FOMC relief rallies. Traders should monitor Fed communications, real yields, institutional flows and on-chain metrics to manage risk.