Analyst: Trump’s Fed Push Spurs $15B Bitcoin ETF Inflows as Bulls Boost Market Exposure

Bitcoin ETFs See $15B Surge as Trump Pressures Fed, Sparking Bullish Bets

U.S. spot bitcoin ETFs have attracted $15 billion in inflows over the past three months, driven partly by rising political pressure on the Federal Reserve to lower interest rates.

Those persistent inflows are pulling traders who were previously cautious back into the market and fueling a renewed wave of optimism for Bitcoin, says Markus Thielen, founder of 10x Research.

“The spike in bitcoin ETF inflows since late April has been largely fueled by political pressure on the Fed,” Thielen noted in a report Thursday. “Donald Trump has been vocal about wanting Jerome Powell to slash rates to 1% and resign. Initially a partisan stance, it’s now gained broader support, with figures like FHFA director Bill Pulte and Senator Cynthia Lummis also calling for Powell’s removal over his hawkish policies.”

Trump’s criticisms have drawn parallels to Turkish President Recep Tayyip Erdogan’s actions between 2019 and 2021, when he removed central bank officials who resisted rate cuts—a move that ultimately triggered a crash in the Turkish lira and an investor exodus.

Trump argues that Powell’s reluctance to cut rates has cost the U.S. economy billions. Meanwhile, minutes from the Fed’s July 17–18 meeting show a divided outlook, with some policymakers advocating cuts as soon as this month, while others prefer to keep rates steady, according to CNBC.

Traders Flock Back to Bitcoin

Amid this political uncertainty, traders are increasing their exposure to Bitcoin.

“Bitcoin ETFs have seen $15 billion in inflows since mid-April,” Thielen said. “Remarkably, this buying hasn’t slowed, even though bitcoin prices have mostly consolidated since mid-May. Derivatives data suggests traders who were under-positioned are now reentering the market.”

Many investors are purchasing call options with strike prices around $130,000, indicating they expect bitcoin to climb higher. Call options gain value if the price of the asset rises, signaling bullish sentiment.

This renewed confidence aligns with bitcoin’s tendency to perform well in July. Data from Coinglass shows bitcoin has ended higher in eight of the last twelve Julys, averaging over 7% gains for the month.

“When you combine bitcoin’s strong seasonal trends in July with potential bullish catalysts from macroeconomic developments, the outlook for further gains remains solid,” Thielen added.

Bitcoin recently touched new highs, trading close to $112,000 on several exchanges late Wednesday, according to CoinDesk.