Bitcoin Bulls ‘Beneath-positioned’ as Trump’s Stress on Fed Pushes $15B Into ETFs, Analyst Says
The U.S.-listed spot bitcoin
exchange-traded funds (ETFs) have attracted billions in investor capital in three months, amid growing political stress on the U.S. Federal Reserve (Fed) to chop charges.
The relentless flows at the moment are forcing “under-positioned” merchants to chase upside by means of derivatives, reviving the bullish momentum within the cryptocurrency, in response to Markus Thielen, founding father of 10x Analysis.
“The sharp surge in bitcoin ETF inflows since late April 2025 has been primarily pushed by political stress on the Federal Reserve, with Donald Trump brazenly demanding that Chair Jerome Powell minimize charges to 1% and resign. What started as a partisan push has since broadened, with Federal Housing Finance Company director Invoice Pulte and Senator Cynthia Lummis additionally calling for Powell to step down, criticizing his perceived hawkish stance,” Thielen mentioned in a word to shoppers Thursday.
Trump’s repeated assaults on the Federal Reserve have revived recollections of Turkish President Erdogan’s comparable actions between 2019 and 2021, which led to a broad-based shift away from Turkish property and a crash within the Lira. Again then, Erdogan issued a number of decrees dismissing central financial institution officers for not chopping charges.
In the meantime, Trump has repeatedly known as for Powell’s resignation, saying his reluctance to chop charges is costing America billions of {dollars}. The minutes of the Fed assembly held on July 17-18 confirmed a rising divide over how coverage ought to proceed from right here. Based on CNBC, Opinions ranged from a “couple” of officers who mentioned the following minimize may come as quickly as this month to “some” who thought no reductions this yr can be applicable.
Beneath-positioned bulls re-enter
The relentless ETF flows, mixed with rising stress on the Fed to chop charges, are lastly forcing merchants, who’ve been hesitant to decide to bullish trades, to re-enter the market absolutely.
“Since mid-April, Bitcoin ETFs have collected $15 billion price of Bitcoin, and notably, this shopping for has continued uninterrupted, whilst Bitcoin has consolidated since mid-Could. This regular demand now seems to be forcing underpositioned merchants again into the market, as urged by positioning knowledge from the derivatives area,” Thielen mentioned.
Merchants have been chasing name choices at strikes $130,000, as CoinDesk famous early this week. A name choice represents a bullish guess available on the market, with the demand for the $ 130,000 name reflecting expectations for a value surge above that degree.
These bullish flows are in keeping with the constructive seasonality sometimes noticed in July. Knowledge tracked by Coinglass exhibits BTC has put in a constructive efficiency in July in eight out of the previous 12 years, with a median acquire of over 7%.
“Mixed with traditionally robust seasonality in July and potential bullish catalysts from upcoming macro knowledge and coverage developments, the backdrop stays supportive for additional upside,” Thielen famous.
Bitcoin hit a file excessive of practically $112,000 on some exchanges late Wednesday, in response to knowledge supply CoinDesk.
