Bitcoin bulls are ramping up their exposure to the world’s leading cryptocurrency as political currents stir the waters of U.S. monetary policy. In an unexpected twist, nearly $15 billion has surged into Bitcoin exchange-traded funds (ETFs) since late April 2025. This influx comes amidst mounting pressure on the Federal Reserve by former President Donald Trump to slash interest rates, a move that has reinvigorated bullish sentiment among traders.
Political Pressure and Market Dynamics
The backdrop to this financial drama is as captivating as it is complex. Trump has been vocal in his criticism of Fed Chair Jerome Powell, urging him to reduce interest rates to a mere 1% or face calls for resignation. This political theater echoes back to the tumultuous times under Turkish President Erdogan, who similarly pressured his central bank, leading to a significant economic upheaval. For more on Trump’s influence on Bitcoin’s potential trajectory, see Bitcoin price can hit $150K in weeks thanks to Trump’s ‘Big Beautiful Bill’.
Markus Thielen, the founder of 10x Research, provides a lens into the situation. “The sharp surge in Bitcoin ETF inflows has been primarily driven by political pressure on the Federal Reserve,” he shared in a note to clients. The narrative has expanded beyond Trump, with figures like Federal Housing Finance Agency director Bill Pulte and Senator Cynthia Lummis joining the chorus against Powell’s perceived hawkish stance.
A Bullish Momentum Reignited
For traders who had been hesitant, the steady stream of capital into Bitcoin ETFs is a clarion call. “Since mid-April, Bitcoin ETFs have accumulated $15 billion worth of Bitcoin,” Thielen emphasized, noting that this buying frenzy has persisted even as Bitcoin prices held steady since mid-May. This consistent demand is nudging cautious traders back into the fray, bolstered by the positioning data in the derivatives market.
The intrigue deepens with traders eyeing call options at the $130,000 strike—a clear sign of bullish expectations. This demand signals an optimism for Bitcoin’s price to breach that level, aligning with historical patterns. July, after all, has been a favorable month for Bitcoin, delivering positive returns in eight of the past twelve years.
Historical Context and Future Implications
The parallels with Erdogan’s Turkey are hard to ignore. Back then, Erdogan’s aggressive rate-cutting led to a flight from Turkish assets, culminating in a severe crash of the Lira. Trump’s current posturing raises questions about potential ramifications for the U.S. economy and the global crypto market. However, some analysts caution that Trump’s ‘Big Beautiful Bill’ Passes—And Bitcoin Could Fall to $90K, Says Arthur Hayes, highlighting the volatility and unpredictability inherent in the market.
With the Fed’s minutes revealing a split in opinions on future rate cuts, the market is ripe with anticipation. Some officials suggest a rate cut as early as this month, while others advocate for no reductions this year. This uncertainty only adds to the allure of Bitcoin as a hedge against traditional market volatilities.
The Road Ahead
As Bitcoin flirts with record highs—reaching nearly $112,000 on some exchanges—the market watches intently. The combination of strong historical performance in July, coupled with the ongoing political saga and potential macroeconomic catalysts, presents a fertile ground for further upside.
Yet, one must wonder: Can this trend sustain itself amidst such political and economic turbulence? As the crypto community navigates these uncertain waters, the lessons from history remain pertinent. Investors and analysts alike are left to ponder the enduring question of Bitcoin’s resilience in the face of fluctuating economic policies and political pressures.
Source
This article is based on: Bitcoin Bulls Increase Exposure as Trump’s Pressure on Fed Pushes $15B Into BTC ETFs, Analyst Says
Further Reading
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- Bitcoin Climbs as Trump’s $5 Trillion Bill Sparks Market Volatility and Political Tensions: Your Weekly Crypto Market Update
- Here’s Why Bitcoin’s Price Doesn’t go up Despite Massive ETF and Corporate Buys
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
