Bitcoin News Today: Trump Pressures Fed for Rate Cuts as Bitcoin Eyes $136K Breakout Amid Policy Uncertainty

Donald Trump has escalated public pressure on the Federal Reserve to cut interest rates, reigniting debates over monetary policy independence and fueling speculation about Bitcoin’s potential breakout. During a recent visit to the Fed’s Washington, D.C., headquarters, the criticized high borrowing costs as a drag on economic growth and reiterated his demand for immediate rate reductions, claiming they would save the U.S. “hundreds of billions” in interest payments. While Fed Chair Jerome Powell has resisted overt political influence, Trump’s aggressive stance—echoed by Treasury Secretary Scott Bessent’s criticism of the Fed’s spending and transparency—has intensified scrutiny ahead of the central bank’s next policy decision [1].

Bitcoin’s price trajectory has become a focal point in this debate. The cryptocurrency, currently valued at a $2.3 trillion market cap, has seen recent volatility, including over $1 billion in liquidated long positions amid a 3% weekly decline. Analysts suggest a potential bullish scenario if the Fed capitulates to rate-cut demands, as lower borrowing costs could spur capital flows into crypto markets. Technical indicators, including a “bull pennant” pattern, point to a possible surge to $136,000–$140,000 if the $120,000 support level holds [2]. However, divergences in the RSI signal short-term pullback risks, highlighting the market’s sensitivity to macroeconomic signals [3].

Macro factors further complicate the outlook. The U.S. M2 money supply remains at record highs, raising inflation concerns and reinforcing Bitcoin’s appeal as a hedge against a weakening dollar. This dynamic aligns with broader market anxieties, as investors weigh the Fed’s balance between combating inflation and avoiding a recession. Trump’s rhetoric, meanwhile, has shaken Wall Street, with his Truth Social posts amplifying calls for rate cuts and questioning the Fed’s role in economic management. Bessent’s critique of the central bank as “a new kind of central planning” has added to the political pressure, underscoring tensions between monetary policy and executive influence [4].

Regulatory developments may also shape Bitcoin’s near-term prospects. The Senate Banking Committee’s draft proposal, building on the Clarity Act, aims to redefine key crypto terms and establish frameworks for institutional engagement. By allowing banks to handle digital assets while curbing illegal activity, the legislation could bolster investor confidence and accelerate institutional adoption. The draft’s August 5 stakeholder consultation deadline adds a layer of uncertainty, but clarity in regulatory terms may mitigate some of the market’s volatility [5].

The interplay between Trump’s demands, the Fed’s cautious stance, and evolving regulatory landscapes creates a high-stakes environment for Bitcoin. While a rate cut could trigger a rapid shift in market sentiment, prolonged tight policy or political gridlock might delay a breakout. For now, traders remain split between optimism over macro-driven inflows and caution about short-term technical risks. The outcome of this policy tug-of-war will likely determine whether Bitcoin’s anticipated rally materializes—or falters under the weight of economic and political pressures.

Sources:

[1] [Bitcoin News Today: Fed Holds Rates as Tariffs Fuel Crypto Volatility](https://www.ainvest.com/news/bitcoin-news-today-fed-holds-rates-tariffs-fuel-crypto-volatility-uncertain-rate-cut-outlook-2507/)

[2] [Powell On The Hot Seat: How Renovation Politics Threaten Fed Independence](https://www.barchart.com/story/news/33637744/powell-on-the-hot-seat-how-renovation-politics-threaten-fed-independence)

[3] [Bitcoin News Today: Bitcoin Faces Pullback Risk as RSI Divergence...](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-faces-pullback-risk-rsi-divergence-open-cme-gap-signal-potential-drop-115k-2507/)

[4] [Jimmy Kimmel Has Challenged Donald Trump](https://uk.news.yahoo.com/jimmy-kimmel-challenged-donald-trump-153000111.html)

[5] [Ethereum Maxi Compares Bitcoin To Outdated Landlines...](https://www.mitrade.com/insights/news/live-news/article-3-982016-20250724)