Bitcoin and Solana Surge Ahead of FOMC Meeting and Trump’s Pro-Crypto Pledge

On Monday, Bitcoin and Solana saw significant gains, with Bitcoin climbing nearly 2% to around $69,381 and Solana surging almost 5% to about $194.

This positive movement comes just before the crucial Federal Open Market Committee (FOMC) meeting set for July 30-31.

Analysts expect the central bank to signal a potential interest rate reduction, likely to be implemented at the September meeting as the Fed shifts from a restrictive monetary policy to a more neutral stance. In the meantime, rates are anticipated to remain at the current 5.25% to 5.50% level.

With inflation subsiding, unemployment rising, and consumer spending slowing down, conditions seem ripe for a potential interest rate cut. The emerging economic data supports this move, aligning with the central bank's aim for a soft landing. Last week, Solana’s market value experienced a dramatic surge, briefly surpassing Binance Coin (BNB)’s. Since then, the two cryptocurrencies have been in close competition.

Additionally, the recent approvals of spot Bitcoin and Ethereum ETFs have fueled speculation about applications for other crypto ETFs. Investors are particularly interested in whether BlackRock, the world’s largest asset manager, will file for spot ETFs on additional altcoins like Solana. Currently, Bitcoin has reached the upper boundary of the descending channel established in March. 

Republican presidential nominee Donald Trump’s speech at the Bitcoin Nashville conference on Saturday also attracted significant media attention and boosted investor interest in Bitcoin. His remarks are part of a broader Republican strategy to attract crypto holders ahead of the November 5 election. At the conference, Trump vowed to make the US the “crypto capital” of the world. He also promised to dismiss SEC Chair Gary Gensler if elected President and to establish a national bitcoin reserve.