Bitcoin News Today: Bitcoin Faces Uncertainty as Trump Policy Shifts and PPI Data Dampen Rate Cut Hopes

Bitcoin is currently navigating a period of uncertainty as the cryptocurrency market braces for potential turbulence stemming from statements and policy actions by the Trump administration. Market participants are closely watching developments, particularly in light of recent price fluctuations and broader macroeconomic conditions that suggest a cautious outlook.

Bitcoin’s price recently retreated from an all-time high of $124,089 to $117,500, triggering $227 million in leveraged liquidations on bullish positions. Despite the sharp pullback, derivatives metrics have not shown signs of panic, with the BTC futures annualized premium holding steady at 9%, within a neutral range of 5%–10% [1]. This indicates that traders are reacting in a measured manner, though the potential for further volatility remains high.

A significant factor influencing the recent volatility has been the hotter-than-expected July US Producer Price Index (PPI), which came in at 3.3% year-over-year. The data has led to a reduced probability of aggressive Federal Reserve rate cuts, with the CME FedWatch tool now showing a 61% implied chance of rates being cut to 3.75% or lower by January 2024, down from 67% a week earlier [1]. This shift in expectations has added pressure on risk assets like Bitcoin, as tighter monetary policy could limit near-term upside potential.

Adding to the uncertainty is US Treasury Secretary Scott Bessent’s recent statement that the government has no plans to expand Bitcoin purchases for its Strategic Reserve or reallocate proceeds from Treasury gold into Bitcoin [1]. This came in contrast to the March executive order by President Trump, which had mentioned budget-neutral strategies for acquiring additional Bitcoin. Bessent’s remarks have tempered market enthusiasm, with traders now questioning whether the administration will pursue a more aggressive stance on digital assets.

The Bitcoin options market, however, remains relatively calm. The 30-day options delta skew stands at 3%, below the bearish threshold of 6%, indicating a balanced risk outlook and a limited fear of a retest of the $110,000 support level [1]. This suggests that traders are not overreacting to the recent pullback and that the market remains in a state of cautious equilibrium.

Meanwhile, speculation surrounding Trump’s personal stake in the crypto market has introduced additional uncertainty. Some analysts have suggested that if Trump’s rumored $2.4 billion crypto fortune materializes, it could influence broader market sentiment and potentially fuel further gains in 2025 [2]. However, such figures remain speculative and are not supported by official data or public statements.

On the geopolitical front, Trump has outlined a broader trade strategy that includes semiconductor tariffs and a slow-walk approach to reducing car import tariffs from the EU, Japan, and South Korea [3]. These policy moves contribute to a climate of uncertainty, particularly as global economic conditions—such as China’s slowing growth—add to the complexity of the investment environment.

As the market awaits clearer signals from the Trump administration, the coming weeks will be critical in determining whether Bitcoin can regain upward momentum or if the prevailing uncertainties will continue to act as headwinds for further growth.

Source:

[1] https://cointelegraph.com/news/bitcoin-s-all-time-high-gains-vanished-hours-later-here-s-why

[2] https://www.interactivecrypto.com/trumps-24-billion-crypto-fortune-could-this-ignite-bitcoins-next-rally

[3] https://subscriber.politicopro.com/article/2025/08/trump-slow-walks-commitment-to-cut-eu-japan-south-korea-auto-tariffs-00509997