Bitcoin News Today: Bitcoin Surges Past $122,000 Amid Trump-Powell Political Tensions

Bitcoin price is surging toward a new all-time high as political tensions escalate between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell. Trump has responded to Powell’s refusal to cut interest rates by naming 11 potential successors for the Fed Chair role, a move seen as a direct challenge to the central bank’s independence and a catalyst for market speculation. The announcement has contributed to a sharp upward trend in Bitcoin, with the price rebounding above $122,000 and attracting significant on-chain activity [1].

The Trump administration has been vocal in its demand for rate cuts, with Treasury Secretary Scott Bessent citing cooling labor market data and Truflation inflation readings of 1.83%—well below the Fed’s 2% target—as justification for an aggressive 50 basis points reduction in September [1]. However, Powell has maintained a cautious stance, signaling that inflation remains a concern and that any rate cuts would be gradual. In response, Trump has escalated the rhetoric, threatening to file a lawsuit against Powell and publicly naming 11 candidates to replace him should the Fed fail to comply with his demands [1].

The list of potential Fed Chair candidates includes prominent figures such as David Zervos of Jefferies, Rick Rieder of BlackRock, and Kevin Hassett, a former director of the National Economic Council. Others on the list include former and current Fed officials like Kevin Warsh, Larry Lindsey, and James Bullard. Trump’s administration argues that Powell’s hawkish position is harming the economy and delaying necessary monetary relief for American consumers [1].

Market sentiment has turned increasingly bullish in response to these developments. On-chain analyst Maartunn noted that Bitcoin’s taker buy volume hit $1.66 billion in just one hour, indicating strong short-term buying pressure as traders attempt to push the price beyond its all-time high of $123,091 [1]. Coinglass data also showed significant volatility in the crypto market, with over $568 million in liquidations recorded in the past 24 hours, and more than $38 million in short positions liquidated within an hour [1].

Futures data from Binance further reinforces the bullish outlook, with Bitcoin’s open interest reaching a new ATH of $15.57 billion. This suggests traders are positioning for continued upward movement, with several analysts forecasting further price gains. Rekt Capital predicts a key resistance level at $126,000, while Ali Martinez forecasts a target of $133,000 as Bitcoin builds toward its next major rally before the potential bull market peak in October [1]. CryptoBirb’s analysis also supports a continued uptrend, with an RSI reading of 62 suggesting further upside potential.

The broader crypto market is also benefiting from positive flows into spot Bitcoin ETFs and increased treasury company holdings. Bullish sentiment in the options market has risen to its highest level, with some traders even betting on a year-end target of $200,000 for Bitcoin [1]. As the political standoff between Trump and Powell continues, the market remains closely watching how the Fed will respond, with every statement and policy shift likely to impact investor sentiment and price action.

Source:

[1] https://coinmarketcap.com/community/articles/689d4c77b20e7a74aa5a39b0/