Bitcoin price is once again in the spotlight due to political changes and expectations for interest rate cuts. We examine potential scenarios for further price movements.
Political Changes and Market Impact
The U.S. Senate has confirmed Stephen Miran to the Federal Reserve Board. His appointment brings more political influence into the country’s monetary policy, as he will participate in decision-making at FOMC meetings. Trump is actively advocating for significant rate cuts, which may affect market expectations and investor sentiment.
Technical Analysis: Bullish Trend
The daily Bitcoin chart shows signs of renewed bullish momentum. Following a dip toward the $107K mark, the price has bounced back and is now trading above $115K. Increased volatility in the Bollinger Bands might indicate further upward movements. Support levels are set at $112K, and resistance is in the range of $116K–$118K.
Risks and Uncertainties
Despite the bullish setup, risks remain high. Inflation data could spike due to tariffs, forcing the Fed to act more cautiously. Political disagreements within the FOMC may cause volatility in the markets. Additionally, a sharp rejection at the $118K resistance level could stall Bitcoin’s momentum.
The combination of political pressure on the Fed, potential interest rate cuts, and Bitcoin's technical achievements may create conditions for a strong price rally. The $115K level could serve as a starting point for further upward movements towards $150K.
