The Federal Reserve has completely fallen! - The dovish faction has captured the policy high ground, and a rate cut in July has become a certainty, the bull run horn in the crypto world shatters Wall Street!

When the global financial markets were still asleep, a "policy earthquake" triggered by internal games within the Federal Reserve has quietly ignited the cryptocurrency circle! In the early hours of July 11, 2025, Federal Reserve Governor Waller and San Francisco Fed President Daly released heavy dovish signals in succession, directly igniting the cryptocurrency market. Bitcoin surged over 15% in a single day, while mainstream coins like Ethereum and Solana skyrocketed collectively, and market sentiment instantly boiled!
1. Internal Division in the Federal Reserve: Doves Strongly Push for an Earlier Rate Cut Timeline
At 1 AM, Federal Reserve Governor Waller made shocking statements during a special meeting: "Current monetary policy is too tight, and conditions for a rate cut in July are already in place, this has nothing to do with politics!" This remark directly shattered the market's expectation of the "Federal Reserve staying put." Even more surprising, San Francisco Fed President Daly followed closely, clearly stating: "There may be two rate cuts this year, with the first cut possibly occurring in the fall!"
It is important to know that just a few weeks ago, there was still an ongoing debate within the Federal Reserve about the timing of interest rate cuts. St. Louis Fed President Bullard had warned that "the impact of tariffs needs to be observed," but now the dovish camp has gained the upper hand. Waller even stated bluntly, "Tariffs have not significantly raised inflation; businesses are absorbing costs through cost-sharing!" This logic directly refutes the conservative view that "tariffs lead to an inflation rebound," clearing the way for interest rate cuts.
2. Market Reaction: The "prophets" of the crypto circle celebrate in advance, with funds pouring in wildly.
The Fed's dovish turn is nothing short of a "nuclear-level benefit" for the crypto world!
Liquidity expectations are heating up: rate cuts mean pressure on the US dollar index, and global funds will flow into high-risk assets. Bitcoin, as "digital gold," is the first to become a safe haven for funds.
Institutional Acceleration in Layout: According to CoinShares data, on the morning of July 11, the net inflow of cryptocurrency investment products exceeded $500 million in a single day, reaching a new high for the year.
Technical breakout: Bitcoin broke through the key resistance level of $68,000 in the early morning, Ethereum surpassed $3,200, and Solana had a daily increase of over 20%, showing a "short-squeeze" style rally in the market.
What is even more noteworthy is that this surge aligns closely with the signals from the Federal Reserve's policy. As veteran traders in the crypto circle say: "The market always reacts before the interest rate cuts, not at the moment of the cuts!"
3. Trump's "Divine Assistance": Pressuring the Federal Reserve to Accelerate Policy Shift
This time, the division within the Federal Reserve reveals the shadow of Trump. On the eve of the meeting, Trump publicly criticized Powell: "Interest rates are at least 3% too high!" and threatened, "If rates are not cut, I will nominate a new chair." Although the Federal Reserve emphasizes its "independence," the statements from officials like Waller and Daly clearly resonate subtly with the pressure from the White House.
More importantly, Trump's tariff policy is becoming the "fig leaf" for the Federal Reserve to lower interest rates. Waller bluntly stated, "Tariffs have not triggered a surge in inflation!" This assertion provides an excellent excuse for cutting interest rates—addressing Trump's political pressure while avoiding the acknowledgment of recession risks.
4. Market Outlook: With the start of the interest rate cut cycle, the bull run in the crypto space may have just begun.
As the timeline for the Federal Reserve's first interest rate cut emerges, the cryptocurrency market will迎来三大催化剂：
Expectations of speculative trading before interest rate cuts: Any dovish remarks before the September meeting could trigger a new round of skyrocketing.
Institutional funds continue to flow in: giants like BlackRock and Fidelity have submitted Bitcoin ETF applications, and interest rate cuts will accelerate the entry of traditional funds.
Ethereum ETF Approval Expectations: The US SEC may approve a spot Ethereum ETF in August, further expanding market capacity.