Hot Update: Trump's New Spending Plan Puts Pressure on the Fed & Crypto Market

A major pivot is emerging in the market. Trump’s new spending orientation indicates that the defense budget and federal spending will rise sharply. As the government has to borrow more, yields and interest rates tend to stay elevated—and this directly limits Powell’s ability to cut rates as the market expects.

The recent bounce in crypto is mainly based on hopes for cheaper capital and ample liquidity. But if the Fed is “tied up” by budget deficits and expanding public spending, this expectation could reverse very quickly.

Powell has also made it clear: nothing has been confirmed yet, and the Fed’s internal stance remains divided on the pace of easing. If fiscal pressures increase, the path to rate cuts will definitely become more complicated.

🔷 Bullish Perspective If the Fed sticks to its rate-cutting roadmap, crypto could recover in a “clean,” orderly fashion with solid support zones below.

🔶 Bearish Perspective If the easing process is slowed down or delayed, volatility will spike and “risk-off” (risk aversion) sentiment is likely to emerge first.

Currently, the short-term trend leans slightly bearish due to increasing macro pressures, but the medium-term outlook remains positive if the easing cycle is maintained.

Smart money is watching yields and the Fed’s tone. Retail investors are still reacting to candlesticks—not the logic of capital flows.

The next few days will decide the major direction. Prepare your scenarios—don’t react emotionally.