Crypto bull Eric Trump says a Federal Reserve rate cut — which his father, President Trump, has been clamoring for — could give crypto prices a big boost.

"I just think you would potentially see this thing skyrocket," Trump told Yahoo Finance, adding that because of crypto's seasonality, there is particular room for growth in the fourth quarter. His crypto miner, American Bitcoin (ABTC), also backed by brother Donald Trump Jr., debuted on the Nasdaq in early September after a merger with Gryphon Digital Mining.

Trump added that lower borrowing costs would free up cash for riskier bets. Fed Chair Jerome Powell is widely expected to lower rates by 25 basis points on Wednesday, though the path for additional cuts remains unclear.

A cut would reduce the appeal of safe, interest-bearing assets, pushing investors toward stocks and speculative trades like bitcoin (BTC-USD). Historically, crypto has rallied after easing cycles, but not in a straight line. While a cut might spark short-term rallies, it may also signal a weaker economy, which could weigh on riskier assets.

Watch: Coinbase CEO Brian Armstrong on the future of crypto

Trump said longtime skeptics are now becoming crypto converters, citing large private wealth management firms. He recalled a friend in a private wealth management who once dismissed bitcoin in favor of Treasurys but has since urged clients to add more crypto exposure.

"These people are falling, and they're falling quickly, and you better believe it's going to pour gas on this whole movement," Trump said.

That optimism comes with context.

The Trump family has created deep ties to the digital asset space. Eric Trump has cofounded American Bitcoin, while President Trump has backed pro-crypto policies, including the GENIUS Act.

The family has experimented with crypto in various ways: taking campaign donations in crypto, offering crypto payment options on their social media platform, Truth Social, and launching their own meme coins — one each from Trump and first lady Melania Trump.

Trump Media, owner of Truth Social, has held significant bitcoin positions. The Trump family is also connected to crypto venture World Liberty Financial.

Bitcoin has climbed 24% year to date and over 92% in the past 12 months, partly fueled by regulatory clarity from measures like the GENIUS Act, which have lifted investor sentiment.

In Eric Trump's view, the digital asset industry is here to stay. "I view it as crypto versus the banks," he said. "There's so much utility throughout the whole industry, certainly America."

He also argues that bitcoin is "digital gold," calling it "gold without all the problems."

Watch: Robinhood CEO on why sovereign wealth funds will be crypto players

Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at francisco.velasquez@yahooinc.com.

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