Eric Trump: Fed Rate Cuts Could Trigger a Sharp Rally in Crypto-Linked Stocks

Eric Trump believes that the fourth quarter of this year could bring a major market shift. If the Federal Reserve follows through with expected interest rate cuts, stocks tied to cryptocurrencies could, in his view, surge dramatically.

The Fed as a Catalyst for Crypto Markets In an interview with Yahoo Finance, Eric Trump said that a potential 25-basis-point rate cut could serve as a powerful trigger. He argued that cheaper borrowing costs typically encourage riskier investments — and cryptocurrencies are among the most attractive. “Lower borrowing costs free up cash for riskier bets,” he explained. According to him, this would mean less appetite for safe-haven assets like U.S. Treasuries and a stronger inflow of capital into crypto. That could make Bitcoin and crypto-related stocks look far more appealing than traditional “safe” investments.

American Bitcoin Listed on Nasdaq Eric Trump also has personal stakes in the sector. He co-founded American Bitcoin (ABTC), which went public on Nasdaq in early September after merging with mining company Gryphon Digital Mining. The project is supported by his brother Donald Jr., and Eric sees the timing as perfect. If Fed Chair Jerome Powell moves forward with rate cuts this week, ABTC and similar crypto-related stocks could see a significant boost.

Wealth Managers Shifting Toward Crypto Trump also highlighted that it’s not just crypto enthusiasts entering the market — even private wealth managers are changing their stance. “These people are shifting quickly,” he said. “It’s a movement that won’t just disappear.” He pointed out that one of his acquaintances, who used to advise clients to stick with Treasuries, is now encouraging them to buy crypto.

Trump Family’s Deep Crypto Involvement The Trump family’s connection to the crypto world runs deep. Donald Trump supported the GENIUS Act during his presidency, aimed at providing clearer legal frameworks for digital assets. His campaigns accept crypto donations, meme coins have been launched in the names of both Donald and Melania, and the Truth Social platform offers crypto payment options. The parent company, Trump Media, also holds Bitcoin and maintains ties with World Liberty Financial, another major crypto player. For Eric, crypto is more than a side project — he calls it a structural shift in finance. “I see it as crypto versus the banks,” he said.

Bitcoin as Digital Gold Bitcoin has seen strong performance in 2025 — up 24% year-to-date and more than 92% over the past 12 months. Eric Trump attributes much of this to greater regulatory clarity around digital assets. In his view, this legal certainty is drawing in “real money” — large institutional investors who once stayed on the sidelines. For Eric, Bitcoin also represents something bigger: a modern replacement for gold. He calls it “digital gold” — an asset with the same store of value, but without the logistical hurdles. “It’s gold without the complications. Easier to store, easier to transfer, and it provides the same benefits,” he explained.

Bottom Line Eric Trump’s case is straightforward: lower rates mean more money for riskier investments, and that opens the door for cryptocurrencies and crypto-linked stocks. Combined with rising institutional support and regulatory clarity, he believes the fourth quarter could be a defining moment for the crypto market.

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