Crypto investors have seen their fears about tariffs subside as rates have largely been determined.
A major event is on the horizon as Trump and Putin are set to meet in Alaska. Putin has been preparing for this difficult decision for some time. The moment has come to take action to end the war in Ukraine, as Trump has decided that he has waited long enough. As this article is being written, the U.S. Treasury Secretary is addressing matters related to cryptocurrencies.
Latest Developments in Cryptocurrencies
U.S. Treasury Secretary Bessent recently shared significant insights regarding cryptocurrencies and tariffs. Addressing ongoing issues like the chip struggle with China, Bessent highlighted special agreements made by major corporations. Her comments on cryptocurrencies were particularly noteworthy.
“We will not be purchasing new cryptocurrencies. We intend to safeguard confiscated cryptocurrencies. The value of Bitcoin 
$118,720 reserves is approximately 15 billion dollars, potentially reaching 20 billion dollars.” 
While this announcement is disappointing, the disillusionment had already occurred. Instead of making new announcements regarding crypto reserves, Trump has decided to hold onto existing assets. It remains to be seen whether crypto-friendly Senators will take action for further developments. Although Cynthia Lummis suggested commercializing gold assets to purchase BTC with the proceeds, these proposals have not yet found sufficient support.
Insights on Interest Rates and Tariffs
Bessent also shared her thoughts on interest rates and tariffs: “Europe is purchasing Russia’s refined petroleum products from India. Trump remains eager to continue discussions with Putin. August and September will serve as valuable tests for customs duty revenues, with the possibility of generating significantly more than 300 billion dollars. By themselves, tariffs could potentially reduce the budget deficit ratio to 5%.”
Bessent continued, “China has cornered itself regarding chips. Our aim is to maximize value for taxpayers while reducing the MBS-Treasury bond interest rate spread. We will retain gold as a store of value.
(Regarding the Fed) We might commence with a 25-basis-point cut and accelerate thereafter. There is scope for a series of rate cuts. An approximate 1.5-point reduction might be needed to reach a neutral level. I’m not advocating for a series of rate cuts by the Fed. It is worth noting that models suggest a lower neutral level.”
