ING Warns of Inflation for the Trump Era! The Rise in Bitcoin May Continue - Coin Bulletin

Analysts at the banking giant ING believe that inflation could rise with the inauguration of Donald Trump in the US. However, this could have a positive impact on Bitcoin.

It is expected that the Federal Reserve Bank will cut its policy interest rate by 25 basis points at the Federal Open Market Committee (FOMC) meeting on Wednesday. In this case, the interest rates will be lowered to the range of 4.25% - 4.5%, and a total easing of 100 basis points will have been recorded since September.

However, the recent increase in the US Consumer Price Index (CPI) and Producer Price Index (PPI) data raises concerns that inflationary pressures may reappear in 2025.

According to the CME FedWatch tool, the probability of a 25 basis point interest rate cut on Wednesday is at 97%. However, analysts warn that the Fed's post-meeting statements and release of economic projections may limit expectations for interest rate cuts in 2025.

The impact of Trump's policies

Please provide the text to be translated. While the inauguration of Donald Trump as the President of the United States is expected in January 2025, the economic impacts of his policies continue to be debated. Trump's proposed tariffs, immigration controls, and individual and corporate tax cuts are suggested to increase inflationary pressures. Analysts at ING Bank indicate that these policies could lead the Fed to pursue a slower and more limited interest rate reduction process throughout 2025:

Please provide the text to be translated.

“Policies including Trump's tariffs and tax cuts could lead the Fed to pursue a shallower and slower easing path in 2025.”

The rally of Bitcoin and institutional interest

While macroeconomic developments affect the market, according to analysts, Bitcoin's recent rally is largely supported by institutional demand and positive market sentiment. Analysts at QCP Capital suggest that the Fed meeting could be in the background for Bitcoin and that BTC is gaining strength from increasing institutional interest. However, QCP says, 'Although it is highly unlikely, an excessively dovish attitude from the Fed and Powell's statements could push Bitcoin even higher'.