Bitcoin is in a “re-accumulation” phase as traders expect the Federal Reserve to cut interest rates and Donald Trump has softened his tariff threats. These shifts push fresh money into the market and force big funds to rethink Bitcoin’s value. The result will shape how much institutional cash steps in, where the price heads next, and how many small traders get forced out through liquidations.
Two storylines converge: rate-cut bets and a pullback on tariff threats. Traders expect the Fed to lower rates and pump more dollars into the system, while Trump first talked of heavy tariffs and then pulled back. A report says rate cut hopes together with new ETF approvals brought about $55 billion into Bitcoin, and days of White House turmoil plus shutdown scares added another $6 billion in crypto moves. Net ETF purchases alone might hit $110 billion, a figure banks cite as proof that large funds now treat Bitcoin as a normal asset.
Trade headlines move prices fast. A 100% tariff threat on Chinese goods knocked Bitcoin down 15% and wiped out 1.6 million leveraged accounts, erasing $19 billion. When Trump later said the levies “won’t stand,” the price bounced the same day.
Trump, China and Bitcoin price
Politics also lock in official support. On March 6, 2025, the President signed an order that creates a U.S. Strategic Bitcoin Reserve, filled with coins seized by the Treasury. A draft law called the “BITCOIN Act of 2025” (S.954) lays out how the government will track as well as handle those coins.
Big funds keep buying ETFs, yet if rules change or inflows stop, the price risks a sharp drop. That flow dynamic now acts as a primary driver of sentiment and liquidity. Trade-war headlines add extra whip, and some desks sketch a fall to $70,000 if shocks return. Position sizing and leverage become crucial in that scenario.
Charts show whales bought below $107,000, the 50-day simple average holds and the RSI is neutral, which analysts read as a path toward $120,000–$123,000 if momentum persists. Regulators ask for full lists of public and private coin holdings, signaling deeper scrutiny alongside growing institutional participation.
The market now waits for the Fed to name the date and size of the first cut. If the easing arrives on time, the quiet buying phase likely turns into a longer rally; if the Fed delays, the same phase may end in a routine pullback. For now, policy timing, ETF flows, and trade headlines are the levers that will decide the next leg.
