Bitcoin, Ethereum, XRP, Cronos Gain. 2 Ways Trump Is Boosting Cryptos. — Barrons.com

By Adam Clark

Bitcoin and other major cryptocurrencies were gaining as the market digests President Donald Trump's efforts to influence the Federal Reserve and his family's further involvement in the sector.

Bitcoin's price was up 1% over the past 24 hours early Wednesday, at around $111,081.

Trump said Tuesday he expected to soon have a majority of his nominees on the Federal Reserve Board of Governors, who will advocate for lower interest rates. The president's comments come following his move late Monday to fire Federal Reserve Gov. Lisa Cook.

Lower rates make risky assets such as stocks and digital assets more attractive relative to lower-yielding investments such as bonds. Reduced rates also tend to weaken the dollar, which boosts crypto valuations.

"Initial macro-driven euphoria often gives way to profit-taking. Still, institutional accumulation points to resilient underlying demand, with public entities now holding over 17% of BTC supply," wrote David Hernandez, an analyst at 21Shares.

Several large altcoins were gaining. Ethereum rose 3.9%, XRP gained 3% and Solana was rising 8.1%. Dogecoin, which is a memecoin, was gaining 4.6%.

Smaller altcoin Cronos was up 39%. Trump Media & Technology Group said Tuesday it is partnering with Crypto.com and Yorkville Acquisition, a special-purpose acquisition company, to create a new firm called Trump Media Group CRO Strategy, which would invest in the token.

The entity will raise about $6.4 billion to buy Cronos, or CRO, tokens, Trump Media said. Separately, Trump Media said it agreed to integrate CRO into its various digital platforms, including Truth Social. Trump Media will buy about $105 million in CRO tokens. The president and his family are Trump Media's largest shareholders.

Write to Adam Clark at adam.clark@barrons.com

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