Bitcoin Bulls Increase Exposure as Trump’s Pressure on Fed Pushes $15B Into BTC ETFs, Analyst Says
Political pressure on the Federal Reserve is fueling a surge in Bitcoin ETF investments, reviving bullish momentum in the cryptocurrency market. Since late April 2025, $15 billion has flowed into Bitcoin ETFs, driven largely by calls from prominent figures like Donald Trump, Bill Pulte, and Senator Cynthia Lummis for Federal Reserve Chair Jerome Powell to cut interest rates and resign. This pressure echoes similar actions by Turkish President Erdogan, which resulted in a significant devaluation of the Lira.
Trump’s repeated attacks on the Fed, emphasizing the economic cost of its hawkish stance, have contributed to the increased investor interest. The Fed’s internal debate, as evidenced by the minutes from the July 17-18 meeting, reveals a divergence of opinions on future rate cuts, ranging from potential cuts this month to a complete hold for the year.
This sustained inflow into Bitcoin ETFs, coupled with mounting pressure on the Fed, is compelling previously hesitant traders to adopt bullish positions. The consistent buying pressure, even during Bitcoin’s consolidation period since mid-May, is forcing a re-entry into the market. This is reflected in the derivatives market, with traders actively purchasing call options at strike prices of $130,000, indicating strong expectations of a price surge beyond this level.
This bullish sentiment aligns with Bitcoin’s historical July performance. Data shows positive returns in eight out of the past twelve years, averaging over 7% gains. The combination of strong seasonality, potential macro-economic catalysts, and policy developments further supports the outlook for continued price increases. Bitcoin recently reached a record high of nearly $112,000 on some exchanges, bolstering this positive market sentiment. The confluence of political pressure, sustained ETF inflows, and positive historical trends creates a compelling bullish narrative for Bitcoin in the near term.
