Recent Developments in U.S. Monetary Policy and Crypto Market Dynamics
Following the announcement discussed in a previous CNFpost regarding the Official U.S. Crypto Reserve—in which President Trump included Bitcoin, XRP, Cardano, and Ethereum—recent developments in U.S. monetary policy and international trade are setting the stage for potential shifts in the cryptocurrency market.
Some updates have reported that traders on prediction platforms like Polymarket are increasingly betting on a 25-basis-point cut in the Federal Reserve’s upcoming rate decision.
A significant bet totaling $10.9 million indicates a 77% probability of such a cut. For context, the Federal Reserve’s Setting the Stance of Monetary Policy states:
A change in the federal funds rate normally affects, and is accompanied by, changes in other interest rates and in financial conditions more broadly; those changes will then affect the spending decisions of households and businesses and thus have implications for economic activity, employment, and inflation.
Interestingly, Bitcoin, XRP, and Cardano are poised to benefit from this key Fed policy shift. At the time of writing, Bitcoin (BTC) is trading at $81,310, reflecting a 4.97% increase in the past 24 hours; XRP is at $2.01 (up 10.06% in the last day), and Cardano (ADA) is at $0.6169 (up 8.17% over the same period).
Escalating Trade Tensions and Tariffs
According to Global Times, the U.S. has recently imposed a 10% tariff on all Chinese goods, intensifying trade tensions between the two largest economies. This move has drawn widespread opposition both domestically and internationally, with concerns about its impact on global trade dynamics.
Cryptocurrency Market Response
Historically, cryptocurrencies like Bitcoin, XRP, and Cardano have responded positively to monetary easing and fiscal stimulus. For instance, during the economic interventions of March 2020, Bitcoin surged from below $4,000 to over $69,000 within a year. Similarly, XRP and Cardano experienced significant gains during that period.
Current Market Conditions
Interestingly, as CNF revealed back in 2024, Hoskinson’s perspective emphasized Cardano’s connection to Bitcoin and XRP, particularly their ability to overcome challenges and foster strong communities.
For a takeaway message: among Bitcoin (BTC), XRP, and Cardano (ADA), XRP has seen the most substantial increase since April 2020. Back then, XRP traded at approximately $0.2138; today, it stands at $2.01, marking an approximate 840% surge.
In comparison, BTC rose from about $8,658.55 to $81,355 (an 840% increase), while ADA increased from $0.050696 to $0.616603 (a 1,116% rise). Therefore, ADA has experienced the most significant overall growth among the three. See ADA price chart below.