Bitcoin soars towards $110K amid Trump’s potential FED shakeup

Bitcoin (BTC) is slowly rising closer to its all-time high as a mix of political, institutional, and regulatory catalysts converge, giving bulls the momentum they’ve been waiting for.

Since hitting a low of $98,974 on June 22, BTC has gained 2.2% to trade at $107,271 at press time according to CoinGecko.

At the centre of this rally is former US President Donald Trump’s fresh comments signalling a possible leadership shakeup at the US Federal Reserve (Fed), which has rattled expectations for future monetary policy.

Trump’s remarks have stirred market expectations

On Wednesday, June 25, Trump publicly suggested that he might replace current Federal Reserve Chairman Jerome Powell if re-elected, sparking immediate reactions across financial markets.

Trump’s remarks have added fuel to Bitcoin’s ongoing price momentum, which is also being driven by surging ETF inflows, strong corporate demand, and a broader shift in institutional sentiment.

Investors view central bank leadership changes as pivotal, especially when the potential appointee could steer monetary policy in a vastly different direction.

Since monetary policy directly affects interest rates, liquidity, and the strength of the US dollar, any uncertainty surrounding it often spills over into risk assets, including Bitcoin.

Trump’s posture toward the Federal Reserve, combined with his broader pro-crypto messaging, appears to be reigniting risk-on appetite in digital asset markets.

Bitcoin, in particular, thrives during periods of monetary uncertainty, as traders rotate out of fiat-based assets and into decentralised alternatives.

Adding to the positive developments, the US Federal Housing Finance Agency (FHFA) has announced a major policy shift involving crypto.

In a landmark move, the FHFA has directed Fannie Mae and Freddie Mac to prepare to recognise cryptocurrency as an asset in mortgage applications.

Such a move not only signals increased mainstream acceptance of Bitcoin but also suggests that crypto may soon be considered a legitimate form of wealth in the eyes of federal agencies.

This policy shift aligns with Trump’s broader crypto-friendly narrative and could potentially unlock more utility for Bitcoin beyond speculative investing.

Bitcoin ETF inflows and institutional buying intensify

While political headlines are drawing attention, the data behind Bitcoin’s surge tells an equally compelling story.

Spot Bitcoin ETFs listed in the United States recorded over $547 million in inflows on Wednesday alone, extending a remarkable 12-day streak of institutional accumulation.

Since June 9, net inflows into Bitcoin ETFs have surpassed $1.49 billion, indicating that large investors are steadily increasing their exposure.

At the same time, corporate entities are doubling down, with firms like Japan’s Metaplanet and ProCap adding thousands of BTC to their reserves in recent days.

Together, this rising tide of demand is creating a favourable supply squeeze scenario, which may explain why Bitcoin is climbing rapidly as it inches toward $110K.

Upcoming Bitcoin options expiry fuels price momentum

Another crucial factor behind Bitcoin’s rally is the looming June 27 options expiry, which will see contracts worth nearly $15 billion settle on the Deribit exchange.

With over 139,000 BTC options set to expire and a put/call ratio of 0.74, the market leans bullish, especially with the max pain point well below current prices.

Traders are now betting that the momentum could push Bitcoin past its May high of $111,970, potentially clearing the way for a new record before the weekend.

Analysts warn, however, that high options open interest also introduces volatility, particularly if profit-taking or unexpected news disrupts market sentiment.

Analysts predict a larger move ahead

With all these factors aligning, some analysts believe the current rally is only the beginning.

Market analyst Cas Abbè forecasts a 50–80% Bitcoin rally by October, citing similarities to Bitcoin’s breakout in 2020 that preceded a parabolic surge.

His prediction is backed by a bullish MACD crossover, fractal patterns, and a confirmed breakout above the neckline of an inverse head-and-shoulders pattern on the weekly chart.

If this projection plays out, Bitcoin could rise to a range between $150,000 and $180,000 within the next few months.

While the market still faces geopolitical risks and short-term volatility, traders are increasingly aligning with the bullish narrative now gaining strength on multiple fronts.

As the dust settles from Trump’s remarks and ETF demand keeps climbing, Bitcoin appears to be on a well-supported path toward reclaiming and possibly surpassing its previous all-time high.

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