Bitcoin price today is trading at $107K, extending last week’s turbulence into July 2025. The dip comes amid growing political tensions between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell, raising concerns across traditional and digital markets alike.
After a strong rebound in the last week of June, Bitcoin stumbled on the final day of the month, falling 1.13%. The decline deepened on July 1, with BTC dropping another 1.35%, touching a low of $105,252.18. This places Bitcoin at least 2.28% below June’s peak, despite a bullish month overall (+2.40%).
Here’s a breakdown of Bitcoin’s recent volatility:
At the center of this week’s market anxiety is a growing power struggle between President Trump and Fed Chair Powell. Trump is pressuring Powell to cut interest rates immediately — even sending him a handwritten note blaming him for high borrowing costs and reportedly demanding his resignation.
But Powell, speaking at a European Central Bank forum, made it clear: “The Fed will not bow to political pressure.” He reaffirmed that any rate cuts will be data-driven, not dictated by politics.
As traditional markets react to interest rate expectations, Bitcoin is increasingly behaving like a macro asset. Analysts believe the latest crypto market drop is linked to Trump-Powell tensions.
“We’re seeing Bitcoin move in tandem with macroeconomic shifts,” said Unity Wallet COO James Toledano. “But the long-term outlook for BTC remains strong.”
While Q1 2025 was disappointing for Bitcoin with a -11.7% return, Q2 flipped the script with a massive 29.9% surge. As of now, Q3 has started with a modest 0.49% gain, with Bitcoin currently trading near $107,670.Despite political drama, macro pressure, and short-term volatility, Bitcoin bulls are still confident. If interest rate clarity arrives soon, we could see the market stabilize or even push higher.
Bitcoin’s current volatility is attributed to its increasing behavior as a “macro asset,” reacting to broader economic shifts. The Trump-Powell conflict, stemming from the President’s pressure on the Fed to cut interest rates, is a significant contributor to this market anxiety, pushing Bitcoin’s price downward as traditional markets react.
Interest rate decisions heavily influence Bitcoin’s price because lower rates generally increase market liquidity, making riskier assets like crypto more attractive. Conversely, higher rates can divert capital into safer, fixed-income products, reducing demand for Bitcoin and potentially suppressing its price.
Bitcoin could stabilize or rally in Q3 2025 if clarity emerges regarding interest rates, easing macroeconomic pressures. Continued institutional demand (including from ETFs), corporate buying, and the asset’s fixed supply could also contribute to upward momentum, potentially pushing it toward $115,000-$135,000.
Historically, Trump’s tariff policies have created market anxiety, as they can be perceived as inflationary and potentially deter the Federal Reserve from cutting rates. This, in turn, can put downward pressure on non-interest-bearing assets like Bitcoin, causing price fluctuations.
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