Bitcoin under pressure: PCE data and Trump's influence on the price!

Bitcoin under pressure: PCE data and Trump's influence on the price!

On August 29, 2025, Bitcoin (BTC) is trading below $110,000 after the price fell following a disruption on Binance. Investors are closely watching developments that could affect Bitcoin's near-term future. A key focus is the upcoming release of the Personal Consumption Expenditures Index (PCE), the Federal Reserve's preferred inflation indicator. These PCE numbers could have a significant impact on the price of Bitcoin, and the uncertainty surrounding monetary policy decisions provides necessary caution in the market. Additionally, current economic signals point to consumer spending and growth outperforming, which calls into question the need for interest rate cuts and could weigh on Bitcoin's outlook, such as investx.fr reported.

Market participants are concerned about Donald Trump's ambitions to potentially take control of the Federal Reserve. These fears revolve around concerns that Trump could use the central bank's monetary policy tools to tackle the US national debt. At the same time, analysts including well-known economist Alex Krüger show that Bitcoin traders are expecting the Fed's first interest rate cut in September, which could create a potentially bullish environment for Bitcoin. According to Krüger, the right candidate for the Fed chair position could further increase Bitcoin prices. However, it remains to be seen whether the announced interest rate cuts will actually be implemented.

Market developments and price trends

Bitcoin recently hit an all-time high of $124,128 but has now fallen 6% to around $115,150, according to recent data from CoinMarketCap. Analysts support the assessment that whale accumulation is currently silent, which could be indicated by the minting activity of billions of USDT. Nevertheless, the overall market dynamics are characterized by uncertainty as Bitcoin approaches a new low.

Furthermore, from cointelegraph.com reports that the Fed's monetary policy decisions can significantly influence the development of Bitcoin. The relationship between Trump and current Chairman Jerome Powell has been strained as Trump has repeatedly criticized the Fed's hesitancy in cutting interest rates. His call for Powell's rapid removal reflects the urgency of his intention to change the monetary policy framework.

The role of the Federal Reserve and future forecasts

Trump's relationship with the Fed could play a crucial role in the coming weeks as he is already considering a list of 11 possible successors to Powell. He has now reportedly narrowed the list down to three or four candidates and could soon announce a replacement. These changes could make the market optimistic, with 83.9% of participants expecting a rate cut at the next meeting on September 17, according to the CME FedWatch tool.

Consistent with the market, Coinbase Institutional analyst David Duong cautions that Fed easing could lead to increased retail participation in the long term, as a large portion of retail capital is currently held in money market funds. These developments could greatly shape the future of Bitcoin and influence the direction of the entire crypto market, especially given the PCE data forecast for the coming days.