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Highlights
- Trump’s push for rate cuts could weaken the dollar, benefiting Bitcoin.
- Implied Volatility near historic lows signals a potential volatile breakout.
- RSI bullish momentum supports upside, with $110K as the next key resistance.
Bitcoin (BTC) price is up 0.63% in the early London trading session, marking the fourth consecutive up candlestick day. While the initial recovery was driven by dip-buying and ceasefire announcements, the recent uptick appears to be stemming from Trump’s comments about replacing Jerome Powell, the US Federal Reserve Chairman.
One of the reasons for the recent rebound in BTC and the crypto markets is the US interfering with the Iran-Israel war and decimating Iran’s nuclear sites while also facilitating a ceasefire.
Trump Seeks to Replace Fed Chairman Jerome Powell
During the 2025 NATO Summit, US President Donald Trump responded to an interviewer’s question by saying that he will soon announce a replacement for the Fed Chair. Due to ongoing market dynamics and Trump’s comments, Bitcoin price closed June 25 on a positive note with a 1.19% gain. Today, BTC price is up 0.63% and trades at $107,931.
“I know, within three or four people, who I’m going to pick. He goes out pretty soon fortunately, because I think he’s terrible.”
The response from Trump stems from the disagreement between the two. Donald Trump wants interest rates to be slashed immediately, but Powell refuses and prefers a data-driven approach. To be precise, the US President wants the interest rates to be slashed by 1% to 2% and may act before Powell’s term ends in 2026.
This comment contradicts Trump’s previous statements, in which he had expressed a desire to wait until Powell’s term ended. When asked about removing the Fed Chair before 2026, in an NBC interview, Trump responded,
“Why would I do that? I get to change him (Jerome Powell) very quickly anyway in a short period of time.”
Bitcoin Price Slows Down, But on the Cusp of Breakout
The daily chart displays a clear bullish trend, with the Relative Strength Index (RSI) consistently above the 50 mean level. This outlook displays that the bullish momentum is in control.
However, a closer look at CoinGape’s aggregated Bitcoin Implied Volatility (IV) indicator shows that the forward expectations of BTC are down. Typically, a drop in IV often proceeds with volatile breakouts. The retests on June 6, June 12, and June 18 of the IV’s lower limit led to explosive moves. As of June 25, the IV has once again tagged the lower limit, indicating that an explosive move awaits the BTC price.
Note: Implied Volatility tracks the future expectation of investors based on the positions and options data. It can be used to assess investors’ mentality about the short-term future. A spike in short-dated IVs often signals overextended moves and results in reversals of the price moves. On the contrary, when IV dries up, it means the underlying asset is ready for an explosive move or extended periods of consolidation.
In addition to the above supporting data points, a previous CoinGape article examined three reasons why BTC price could hit ATH June 2025.
To conclude, the outlook for the Bitcoin price remains skewed in favor of the bulls after US President Donald Trump mentioned replacing Federal Reserve Chairman Jerome Powell. The uptick in BTC’s value on June 25 is another testament to investors’ reaction. Moreover, the declining IVs and rising RSI also add credence to a potential bullish outlook for Bitcoin in the near term. Despite the short-term noise, the long-term Bitcoin price prediction for 2025 remains largely bullish on the higher timeframes.
Frequently Asked Questions (FAQs)
1. Why is Bitcoin price rising despite market uncertainty?
2. How could Trump’s Fed Chair replacement impact Bitcoin?
3. What technical signals suggest a Bitcoin breakout?
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