Bitcoin News Today: Trump's Rate Push vs. Fed Caution: Bitcoin Plunges Into Bearish Phase

Trump's Frustration With Fed Rates Sparks Bitcoin Market Volatility Amid Global Policy Shifts

U.S. President Donald Trump has escalated his public pressure on the Federal Reserve, joking that he might fire Treasury Secretary Scott Bessent if interest rates are not lowered more aggressively. During a U.S.-Saudi investment event in Washington, Trump quipped, "The only thing Scott's blowing it on is the Fed... if you don't get it fixed fast, I'm going to fire you," according to reports. The remarks, delivered in a lighthearted tone, underscored Trump's impatience with the Fed's cautious approach to rate cuts, which he argues are stifling economic growth and inflating the national debt. Bessent, who has no authority to set rates, has instead been tasked with identifying Trump's preferred successor to Federal Reserve Chair Jerome Powell, whose term ends in May 2026.

Meanwhile, Bitcoin's price has entered what on-chain analysts describe as the "most bearish" phase of its current bull cycle. According to CryptoQuant, the Bull Score Index has plummeted to 20/100, while Bitcoin's price fell below its 365-day moving average of $102,600, a key technical threshold. The decline follows waning demand from institutional buyers, including corporate treasury firms that previously supported the market. Michael Saylor's MicroStrategy has significantly reduced its Bitcoin purchases despite a recent $835 million acquisition. ETF inflows have also slowed, with year-to-date net inflows at $27.4 billion-52% below 2024 levels-raising concerns about sustained investor confidence.

The bearish sentiment contrasts with Trump's push for aggressive monetary easing, which could indirectly influence Bitcoin's trajectory. Trump has repeatedly criticized Fed Chair Jerome Powell and hinted at replacing him with a more dovish candidate, though Bessent has reportedly urged restraint. Bessent, meanwhile, revealed that Trump is narrowing the list of potential Fed chairs, with a final decision likely before Christmas. The outcome of this selection process could signal broader policy shifts, potentially affecting global capital flows and cryptocurrency markets.

In a separate but related development, India's government is considering a stablecoin regulatory framework, diverging from the Reserve Bank of India's (RBI) cautious stance. The Ministry of Finance plans to propose stablecoin rules in its 2025-2026 Economic Survey, while the RBI maintains that digital assets pose risks to financial stability. RBI Governor Sanjay Malhotra emphasized India's robust domestic payment systems including the Unified Payments Interface (UPI), as alternatives to foreign-backed stablecoins. However, the government's potential endorsement of stablecoins could legitimize crypto in the world's most populous nation, spurring adoption and influencing regional markets.

Amid these policy shifts, new financial products are emerging to capitalize on crypto's volatility. Leverage Shares announced plans to launch 3x leveraged and inverse Bitcoin and Ethereum ETFs on the SIX Exchange, despite a 21% drop in Bitcoin's value this month. The products, set for a November 2025 launch, reflect growing institutional interest in crypto derivatives, though analysts warn of heightened risks during periods of extreme market swings.

As Trump's Fed overhaul and global regulatory debates unfold, Bitcoin's path to $200,000-once a widely discussed target-now appears increasingly contingent on macroeconomic stability and institutional confidence. With key technical support levels holding near $90,000 and no clear catalysts on the horizon, the market remains in a delicate balancing act between bearish corrections and potential rebounds.