Trump’s Fed Pressure Sparks $15B Bitcoin ETF Frenzy—Bulls Are Doubling Down

Bitcoin's getting a political tailwind—and Wall Street's scrambling to catch up.

The Trump Effect:
Former President's jawboning pushes $15B into BTC ETFs as institutional FOMO kicks in. Analysts say the Fed's hand is being forced, creating a perfect storm for crypto.

ETF Gold Rush:
BlackRock and friends are raking in inflows while traditional finance veterans grumble about 'speculative mania' (between sips of their $20 artisanal coffees).

What's Next:
With macro winds shifting, Bitcoin's becoming the anti-establishment trade of choice. Just don't tell the SEC.

Under-positioned bulls re-enter

The relentless ETF flows, combined with growing pressure on the Fed to cut rates, are finally forcing traders, who have been hesitant to commit to bullish trades, to re-enter the market fully.

"Since mid-April, Bitcoin ETFs have accumulated $15 billion worth of Bitcoin, and notably, this buying has continued uninterrupted, even as Bitcoin has consolidated since mid-May. This steady demand now appears to be forcing underpositioned traders back into the market, as suggested by positioning data from the derivatives space," Thielen said.

Traders have been chasing call options at strikes $130,000, as CoinDesk noted early this week. A call option represents a bullish bet on the market, with the demand for the $ 130,000 call reflecting expectations for a price surge above that level.

These bullish flows are consistent with the positive seasonality typically observed in July. Data tracked by Coinglass shows BTC has put in a positive performance in July in eight out of the past 12 years, with an average gain of over 7%.

"Combined with historically strong seasonality in July and potential bullish catalysts from upcoming macro data and policy developments, the backdrop remains supportive for further upside," Thielen noted.

Bitcoin hit a record high of nearly $112,000 on some exchanges late Wednesday, according to data source CoinDesk.