Bitcoin is back in the spotlight as U.S.-listed spot Bitcoin exchange-traded funds (ETFs) have attracted a staggering $15 billion in just three months. According to analysts, this fresh wave of investment is being driven not only by market interest but also by growing political pressure on the U.S. Federal Reserve to cut interest rates.

Former President Donald Trump has been vocal in his criticism of Fed Chair Jerome Powell, demanding rate cuts down to 1% and even calling for Powell’s resignation. Trump’s stance has been echoed by others in Washington, including Federal Housing Finance Agency director Bill Pulte and Senator Cynthia Lummis. These calls for change at the Fed are stirring up both political and financial markets and Bitcoin is emerging as a major beneficiary.

Political Heat Mirrors Turkey’s 2019–21 Crisis

Analyst Markus Thielen of 10x Research noted similarities between the current U.S. situation and what happened in Turkey under President Recep Tayyip Erdoğan. Between 2019 and 2021, Erdoğan pushed for rate cuts and sacked central bank leaders who refused, leading to a crash in the Turkish lira and a loss of investor confidence.

Now, Trump’s pressure campaign is reviving those memories, raising questions about the future independence of the U.S. central bank. While the Fed has not yet made a move, the debate is heating up. According to the minutes of the Fed’s July 17–18 meeting, some officials favour a rate cut soon, while others see no reason to lower rates this year. This internal divide only adds to the uncertainty that investors are watching closely.

Traders Re-Enter as Bitcoin Consolidates

Despite Bitcoin’s sideways price movement since mid-May, ETFs have continued buying without pause. This constant demand is having an effect. Traders who were previously cautious or “under-positioned” are now being pushed back into the market.

Thielen pointed out that this buying pressure from ETFs is likely forcing traders to chase bullish positions in the derivatives market. Data from CoinDesk reveals that traders are now placing call options for strike prices as high as $130,000. This indicates a clear belief that Bitcoin could rally far beyond its current levels in the months ahead.

July’s Strong History Supports Bullish Momentum

Adding fuel to the fire is the historically strong performance of Bitcoin in July. Data from Coinglass shows that in eight out of the past 12 years, Bitcoin has seen gains during this month, with an average return of over 7%. This seasonal trend, combined with ongoing ETF inflows and political drama surrounding the Fed, is creating a bullish environment.

Analysts believe that upcoming macroeconomic data, Federal Reserve decisions, and potential regulatory shifts could act as catalysts for another price rally. All signs currently suggest that Bitcoin may be gearing up for a strong second half of 2025.

Bulls Back in Control, But Risks Remain

The current environment is a perfect storm for Bitcoin bulls. Political pressure, steady ETF demand, and seasonal trends are all pushing in favour of higher prices. However, the long-term impact of politicising the U.S. Federal Reserve could introduce instability down the road.

For now, though, traders and investors seem willing to ride the wave. With derivatives markets flashing bullish signals and capital flowing steadily into Bitcoin ETFs, the market is once again tilting toward optimism.