Trump: Interest rates should be lowered to 1% or lower, Federal Reserve: raising rates to address inflation risks

[Citi Research Strategists Discuss Central Bank Policy Impact, Bitcoin Recovery Signals 2026 Strategy Shift] Dirk Willer, Global Macro Strategy Head at Citi Research, and Alex Saunders, Head of Quantitative Global Macro and Asset Allocation Team, pointed out that while most central banks maintain a hawkish stance, the dovish signals from the Bank of Japan are influencing USDJPY trends. Bitcoin's recovery signals a shift in digital asset investment strategies for 2026.

SharpLink CEO Joseph Chalom stated that the integration of AI agents with on chain financial infrastructure is expected to result in a redistribution of over $1 trillion in annual revenue for the global financial services industry by 2030, reaching $4 trillion by 2035, and saving investors $1.4 trillion in fees annually by 2035.

Citigroup stated that the US Senate failed to push the CLARITY bill into formal review, and Bitcoin remains strong. The legislative obstruction has restricted the CFTC from obtaining more complete regulatory authorization for the cryptocurrency market in the short term, while the SEC can still advance some rule making based on its existing authority. The subsequent focus will be on the SEC's actual execution pace of trading, tokenized assets, and market access rules. The macro environment remains a variable for Bitcoin's rebound, and if AI investment supports growth, employment, and wage pressures persist, interest rates face upward revision risks. Citigroup sees the mid-term moving average of Bitcoin as a signal of a rebound in risk appetite.

Investment bank B. Riley Securities reiterated its buy rating on Bitcoin treasury company Strategy and raised its target price to $195, citing the SEC's innovation exemption for tokenized securities as a key catalyst in recent times. (Source: Bitcoin Treasury)

The US dollar rose to a two month high, coupled with hawkish remarks from Federal Reserve officials reinforcing tightening expectations, causing gold prices to fall within the range of $4300 to $4400. Ole Hansen, head of commodity strategy at Shengbao Bank, stated that gold continues to trade within a narrow range of $4300 to $4400, with statements from Federal Reserve officials, US interest rates, bond yields, the US dollar, and oil prices providing the main direction for short-term traders. Richmond Federal Reserve Chairman Barkin stated that raising interest rates and the threat of future rate hikes will suppress corporate inflation expectations and cool down price increases, and will not drag down economic activity.