Bitcoin Slides as Fed Uncertainty and Political Pressure Weigh on Markets
Bitcoin and broader cryptocurrency markets have returned to a risk-off state reminiscent of late 2025 as political and monetary-policy uncertainty mounts. Comments and actions from former President Trump — including repeated public calls for immediate rate cuts, criticism of Fed leadership, and signals he may intervene in Fed independence — have stirred debate and contributed to U.S. bond sell-offs. Federal Reserve officials, meanwhile, signal rates will likely remain unchanged for the near term, keeping policy tight. Traders report growing bearish momentum: analysts warn Bitcoin (BTC) may be in a new bear phase, with technical commentary suggesting a potential breakdown below key price levels (notably $81,000) if weekend low-volume selling accelerates. Market participants are watching the ETF average-cost area (~$82,600) and a persistently negative Coinbase premium as signs that institutional buying remains muted. Short-term outlook: elevated downside risk and volatility, especially over low-volume periods. Medium-to-long term: outcomes hinge on Fed leadership changes, interest-rate path, and whether institutional flows return to ETFs and spot markets.
Bearish
The article describes rising political pressure on the Federal Reserve from Trump alongside Fed signals that rates will likely stay steady — a combination that increases macro uncertainty. Market indicators cited (negative Coinbase premium, ETF average-cost resistance at ~$82,600) and analyst commentary pointing to a bear phase and possible drop below $81,000 point to near-term downside. Low weekend trading volume raises the risk that sellers can push prices sharply lower. Historically, similar periods of policy uncertainty and weak institutional demand (e.g., muted ETF inflows, negative exchange premiums) have preceded short-term price declines in BTC. Unless institutional buying resumes or a clear dovish pivot by the Fed emerges, expect continued bearish pressure and elevated volatility in the short term; long-term direction will depend on concrete policy shifts and renewed institutional demand.