Bitcoin Surpasses $97,000 Amidst Political Uncertainty in the United States
The institutional stability of the United States is currently at a critical juncture, and the impact is being strongly felt in the Bitcoin (BTC) market. The ongoing conflict between the Trump administration and the Federal Reserve (FED) Chairman, Jerome Powell, has caused a significant shift in investor psychology. Amidst this political uncertainty, Bitcoin has managed to surpass $97,000, positioning itself as a safe haven asset in the face of potential erosion of the FED’s independence.
Triggering the Crisis: An Investigation Against Powell
The crisis was triggered by the Department of Justice opening an investigation against Powell. The Trump administration has threatened to charge Powell based on his testimony before Congress in June about a FED construction project. Powell has denounced these actions as an intimidation tactic designed to influence interest rate policy.
Trump’s Criticism of Powell
President Donald Trump has maintained a critical stance, distancing himself from the legal process but questioning Powell’s capabilities. “I don’t know anything about it, but he’s certainly not very good at the FED, and he’s not very good at building buildings,” Trump said about Powell.
The Strategy Behind the Conflict: Low Rates and Liquidity
The ultimate goal of this conflict would be to force Powell’s exit and install a successor aligned with the White House’s economic vision. The aim would be to implement a much more aggressive monetary policy in reducing interest rates.
Impact on Bitcoin and Cryptocurrencies
This flow of capital often goes towards stocks, Bitcoin, and other cryptocurrencies. As credit becomes cheaper, global liquidity increases, driving up the demand for Bitcoin, which tends to be reflected in a rapid increase in its price.
Elections and the FED’s Calendar
For analyst Dennis Liu, the market is interpreting this conflict as a sign of imminent liquidity. The pressure on Powell comes at a crucial time in the economic and political cycle, given the upcoming mid-term elections on November 3, 2026.
Bitcoin’s Bullish Trend Remains Intact
From a technical analysis perspective, Bitcoin’s behavior supports the optimism generated by the macroeconomic environment. Despite specific corrections, the price structure shows resilience, which the analyst considers fundamental for reaching new goals.
The Fight Between Trump and the FED Will Boost Bitcoin
The real decision for the market will come when the price reaches the psychological level of $100,000. This point coincides with the 50-week simple moving average (SMA), an indicator that has not yet been tested and usually acts as significant resistance in mid-term election years, says Liu.
Caution is Advised
However, Liu advises caution: “This looks like a tradable bounce and not a guaranteed supercycle yet. Trade with the movement you have in front of you. Let the price decide what’s next towards $100,000, which is the level that matters.”
In contrast, other industry voices maintain a more conservative stance. Analyst CryptoCon believes that Bitcoin is simply repeating historical patterns indicating a market overheating. According to his view, a bear market for the digital currency is approaching, dismissing the idea of a prolonged bullish cycle. Regardless of which view prevails, the dispute between the government and the FED has solidified Bitcoin as a thermometer of investor confidence.
Conclusion
The ongoing conflict between the Trump administration and the FED has had a significant impact on the Bitcoin market. Amidst the political uncertainty, Bitcoin has managed to surpass $97,000, positioning itself as a safe haven asset. The ultimate goal of this conflict appears to be a shift in monetary policy, which could have significant implications for Bitcoin and other cryptocurrencies. As the situation continues to unfold, investors and analysts are closely watching the market’s response.
