As of July 1, 2025, Bitcoin is priced at $107K, continuing the volatility from late June. The primary reasons for these fluctuations are tied to political factors and interest rate expectations.
Bitcoin Price Movement at the Start of July
After a strong rebound in the last days of June, Bitcoin fell by 1.13% on the last day of the month and another 1.35% on July 1, hitting a low of $105,252.18. This puts it 2.28% below June's peak, despite an overall increase of 2.40% for the month.
The recent market volatility can be broken down as follows:
* **June 1–2**: Slight rise of 1.19% * **June 3–5**: Sharp drop of 4.11% * **June 6–10**: Strong rebound of 8.66% * **June 11–22**: Consistent decline of 8.42% * **June 23–29**: Impressive recovery of 7.29% * **June 30**: 1.13% drop * **July 1**: Down 1.35%.
Trump vs Powell: Impact on Market
At the center of the current market anxiety is a growing power struggle between President Trump and Fed Chair Powell. Trump is pressuring Powell for immediate interest rate cuts, blaming him for high borrowing costs, and has reportedly sent a handwritten note demanding his resignation.
However, 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.
Q3 2025 Outlook
While Q1 2025 was disappointing for Bitcoin with an -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 trading near $107,670. Despite political drama and short-term volatility, Bitcoin bulls remain confident. If clarity emerges regarding interest rates, we could see the market stabilize or even push higher.
In conclusion, Bitcoin continues to be affected by political factors, yet if there is clarity in interest rates and continued support from institutional investors, there is potential for recovery and growth in the coming months.
