๐ช Bitcoin Rises as Fed Turns Dovish, but Trumpโs Policy Risks Keep Traders on Edge
Bitcoin climbed higher this week ๐ as optimism grew that the Federal Reserve will soon cut interest rates ๐ธ โ a move that typically boosts risk assets like crypto. With inflation cooling and the labor market showing signs of slowdown ๐, markets are betting on a 25-basis-point rate cut, sparking renewed enthusiasm across digital assets.
Institutional demand remains strong ๐ผ, and ETF inflows are adding fresh momentum to Bitcoin, now hovering around $112Kโ$114K. Traders are eyeing this as a potential setup for another bullish leg upward ๐.
However, not everyoneโs convinced the rally will last โ ๏ธ. But Donald Trumpโs economic policies โ including possible tariff hikes and fiscal expansion โ could re-ignite inflation ๐ฅ. That might force the Fed to pause or even reverse course, cooling the marketโs current euphoria.
Adding to the uncertainty, leveraged bets in Bitcoin futures are piling up ๐, making the market vulnerable to sharp corrections if sentiment turns.
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