US President Donald Trump Announces Credit Card Rate Cuts, How Does it Affect Crypto Investments?

TheNewsCryptoPubblicato 2026-01-10Pubblicato ultima volta 2026-01-10

Introduzione

US President Donald Trump has announced a proposal to cap credit card interest rates at 10%, along with other measures like cutting home loan rates and removing taxes on car loans. While these announcements could potentially free up finances for crypto investments, they require congressional approval. The crypto market is currently experiencing volatility, with BTC and ETH seeing minor declines. Additionally, spot Bitcoin and Ether ETFs have recorded consecutive days of outflows. Investors are advised to conduct thorough research before making any crypto investments.

US President Donald Trump has announced rate cuts on credit cards, bringing them down significantly for citizens. This in addition to cutting home loan rates and removing tax on American car loans. These are expected to collectively influence crypto investments – thereby impacting crypto prices.

Announcements by US President Donald Trump

US President Donald Trump has made several announcements; however, three of them have drawn a lot of attention in the context of crypto investments. The most recent announcement pertains to capping the interest rate on credit cards. Trump has said that credit card rates will be capped to 10% for one year starting from January 20, 2026, bringing them down from 20-30%.

However, a fact check on X by its AI tool, Grok, has highlighted that this could be a proposal or call for action. This is based on the principle that capping credit card interest rates requires congressional legislation. Interestingly, the announcement comes days after Trump tabled his plan to lower housing costs for Americans and implement no tax on American cars.

What Happens to Crypto Investments?

Global crypto markets are holding volatility with a dip of 0.84% in the market cap. This is mainly in consideration of a delay in the court’s verdict on tariffs and the announcement of the unemployment rate. The possibility of capping credit card rates, along with other announcements, does open the possibility to save finances and divert them to the crypto market. The Federal Reserve cutting rate at the January 27-28 meeting could further facilitate allocation to the segment.

For now, the likes of BTC and ETH are down by 0.36% and 0.77% over the last 24 hours, respectively. Bitcoin tokens are trading at $90,529.63, and Ether is exchanging hands at $3,087.63 when the article is being written. It is recommended to do thorough research and risk assessment before crypto investments.

ETFs’ Performance

Spot Bitcoin ETF and Spot Ether ETF noted significant outflows on January 09, 2026 – making it the 4th consecutive time for BTC ETF and the 3rd consecutive day for ETH ETF. Outward movement was $250 million for Spot Bitcoin ETF and $93.8 million for Spot Ether ETF.

Their respective historical cumulative inflows now stand at $56.38 billion and $12.45 billion. Suffice to say, volatility is impacting their ETF products in the market as well.

Highlighted Crypto News Today:

Momentum Tension for PUMP: Break Toward $0.0030 or Another Fade Lower?

Domande pertinenti

QWhat specific announcements did US President Donald Trump make regarding credit card rates and other financial measures?

AUS President Donald Trump announced a cap on credit card interest rates at 10% for one year starting from January 20, 2026, down from 20-30%. He also announced cuts to home loan rates and the removal of tax on American car loans.

QAccording to the article, how might Trump's announcements potentially affect crypto investments?

AThe announcements could lead to individuals saving money on credit card interest, home loans, and car loans, which might then be diverted into the crypto market. A potential Federal Reserve rate cut could further facilitate allocation to crypto investments.

QWhat was the performance of Bitcoin and Ethereum at the time the article was written?

AAt the time the article was written, Bitcoin (BTC) was down 0.36% trading at $90,529.63, and Ethereum (ETH) was down 0.77% trading at $3,087.63 over the last 24 hours.

QWhat was the trend in Spot Bitcoin and Spot Ether ETF flows on January 09, 2026?

AOn January 09, 2026, Spot Bitcoin ETFs saw outflows of $250 million (the 4th consecutive day of outflows), and Spot Ether ETFs saw outflows of $93.8 million (the 3rd consecutive day of outflows).

QWhat important point did the fact check by Grok on X highlight about Trump's credit card rate cap announcement?

AThe fact check by Grok on X highlighted that capping credit card interest rates requires congressional legislation, suggesting that Trump's announcement could be a proposal or a call for action rather than an immediate, executable policy.

Letture associate

CLARITY Act: Banking Trade Groups Push For Yield Agreement Revision – Details

US banking trade groups are urging revisions to the stablecoin yield compromise in the upcoming CLARITY Act ahead of a key committee markup. The Act currently aims to ban all passive, deposit-like interest on stablecoins to prevent competition with traditional bank savings, while allowing rewards tied to active uses like staking or transactions. In a letter, groups including the American Banking Association and Bank Policy Institute proposed stricter language to eliminate perceived loopholes for passive yield and prevent deposit flight from banks. However, these efforts are reportedly viewed as minor by some lawmakers. The Senate Banking Committee is scheduled to mark up the bill on May 14, a critical step before it can advance through Congress.

bitcoinist8 h fa

CLARITY Act: Banking Trade Groups Push For Yield Agreement Revision – Details

bitcoinist8 h fa

This Finance CEO Picks Solana Instead Of Bitcoin — Here’s Why

Finance CEO Raoul Pal prefers Solana over Bitcoin, citing its high throughput and low transaction costs as better suited for the future crypto-AI era. He believes Solana is ideal for machine-to-machine microtransactions and AI-driven DeFi activity, predicting AI agents will soon dominate DeFi users. While Bitcoin serves as a store of value, Pal sees higher growth in networks built for mass, automated transactions. This view was highlighted at Consensus 2026, where AI integration and crypto infrastructure were key themes.

bitcoinist8 h fa

This Finance CEO Picks Solana Instead Of Bitcoin — Here’s Why

bitcoinist8 h fa

Gensyn AI: Don't Let AI Repeat the Mistakes of the Internet

In recent months, the rapid growth of the AI industry has attracted significant talent from the crypto sector. A persistent question among researchers intersecting both fields is whether blockchain can become a foundational part of AI infrastructure. While many previous AI and Crypto projects focused on application layers (like AI Agents, on-chain reasoning, data markets, and compute rentals), few achieved viable commercial models. Gensyn differentiates itself by targeting the most critical and expensive layer of AI: model training. Gensyn aims to organize globally distributed GPU resources into an open AI training network. Developers can submit training tasks, nodes provide computational power, and the network verifies results while distributing incentives. The core issue addressed is not decentralization for its own sake, but the increasing centralization of compute power among tech giants. In the era of large models, access to GPUs (like the H100) has become a decisive bottleneck, dictating the pace of AI development. Major AI companies are heavily dependent on large cloud providers for compute resources. Gensyn's approach is significant for several reasons: 1) It operates at the core infrastructure layer (model training), the most resource-intensive and technically demanding part of the AI value chain. 2) It proposes a more open, collaborative model for compute, potentially increasing resource utilization by dynamically pooling idle GPUs, similar to early cloud computing logic. 3) Its technical moat lies in solving complex challenges like verifying training results, ensuring node honesty, and maintaining reliability in a distributed environment—making it more of a deep-tech infrastructure company. 4) It targets a validated, high-growth market with genuine demand, rather than pursuing blockchain integration without purpose. Ultimately, the boundaries between Crypto and AI are blurring. AI requires global resource coordination, incentive mechanisms, and collaborative systems—areas where crypto-native solutions excel. Gensyn represents a step toward making advanced training capabilities more accessible and collaborative, moving beyond a niche controlled by a few giants. If successful, it could evolve into a fundamental piece of AI infrastructure, where the most enduring value in the AI era is often created.

marsbit9 h fa

Gensyn AI: Don't Let AI Repeat the Mistakes of the Internet

marsbit9 h fa

Why is China's AI Developing So Fast? The Answer Lies Inside the Labs

A US researcher's visit to China's top AI labs reveals distinct cultural and organizational factors driving China's rapid AI development. While talent, data, and compute are similar to the West, Chinese labs excel through a pragmatic, execution-focused culture: less emphasis on individual stardom and conceptual debate, and more on teamwork, engineering optimization, and mastering the full tech stack. A key advantage is the integration of young students and researchers who approach model-building with fresh perspectives and low ego, prioritizing collective progress over personal credit. This contrasts with the US culture of self-promotion and "star scientist" narratives. Chinese labs also exhibit a strong "build, don't buy" mentality, preferring to develop core capabilities—like data pipelines and environments—in-house rather than relying on external services. The ecosystem feels more collaborative than tribal, with mutual respect among labs. While government support exists, its scale is unclear, and technical decisions appear driven by labs, not state mandates. Chinese companies across sectors, from platforms to consumer tech, are building their own foundational models to control their tech destiny, reflecting a broader cultural drive for technological sovereignty. Demand for AI is emerging, with spending patterns potentially mirroring cloud infrastructure more than traditional SaaS. Despite challenges like a less mature data industry and GPU shortages, Chinese labs are propelled by vast talent, rapid iteration, and deep integration with the open-source community. The competition is evolving beyond a pure model race into a contest of organizational execution, developer ecosystems, and industrial pragmatism.

marsbit10 h fa

Why is China's AI Developing So Fast? The Answer Lies Inside the Labs

marsbit10 h fa

3 Years, 5 Times: The Rebirth of a Century-Old Glass Factory

Corning, a 175-year-old glass company, is experiencing a dramatic revival as a key player in AI infrastructure, driven by surging demand for high-performance optical fiber in data centers. AI data centers require vastly more fiber than traditional ones—5 to 10 times as much per rack—to handle high-speed data transmission between GPUs. This structural demand shift, coupled with supply constraints from the lengthy expansion cycle for fiber preforms, has created a significant supply-demand gap. Nvidia has invested in Corning, along with Lumentum and Coherent, in a $4.5 billion total commitment to secure the optical supply chain for AI. Corning's competitive edge lies in its expertise in producing ultra-low-loss, high-density, and bend-resistant specialty fiber, which is critical for 800G+ and future 1.6T data rates. Its deep involvement in co-packaged optics (CPO) with partners like Nvidia further solidifies its position. While not the largest fiber manufacturer globally, Corning's revenue from enterprise/data center clients now exceeds 40% of its optical communications sales, and it has secured multi-year supply agreements with major hyperscalers including Meta and Nvidia. Financially, Corning's optical communications revenue has surged, doubling from $1.3 billion in 2023 to over $3 billion in 2025. Its stock price has risen nearly 6-fold since late 2023. Key future catalysts include the rollout of Nvidia's CPO products and the scale of undisclosed customer agreements. However, risks include high current valuations and potential disruption from next-generation technologies like hollow-core fiber. The company's long-term bet on light over electricity, maintained even through the telecom bubble crash, is now being validated by the AI boom.

marsbit11 h fa

3 Years, 5 Times: The Rebirth of a Century-Old Glass Factory

marsbit11 h fa

Trading

Spot

Futures