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Bitcoin climbed to a record $124,000 in mid-August . Market analysts link the gains to speculation over future Federal Reserve leadership and the possibility of looser policy ahead.
Trump’s Fed politics and the crypto connection
Trump has indicated a desire to reshape Federal Reserve leadership. Reports suggest allies are pushing for more direct influence over Fed appointments and a policy tilt toward lower rates.
Such moves could affect liquidity, bond yields, and risk assets. Commentators have noted that these signals have coincided with stronger crypto performance in recent months.
Bitcoin reached an intraday high of $124,000 in August, before consolidating to $107,000. As of September 15, Bitcoin is trading at $116,000. The rise came alongside a broader rally across digital assets, with a total market cap of $2.3 trillion.
 
The Fed controls interest rates that shape dollar liquidity and valuations across asset classes. A shift toward easier policy generally reduces discount rates and can lift risk assets, including Bitcoin.
Market coverage through August and September repeatedly linked investor optimism about rate cuts to crypto’s upward momentum.
Analysts identify three measurable channels for how Fed decisions might influence Bitcoin: lower short-term rates, increased liquidity flowing into risk assets, and potential government or institutional allocations tied to new policy frameworks.
The available evidence shows a correlation between political announcements and market movements on specific dates.
What is not yet established is a direct causal relationship proving that changes in Fed personnel or policy will always drive Bitcoin higher.
Bitcoin’s recent rally has unfolded alongside policy pronouncements and speculation over Federal Reserve leadership under Trump.
The asset reached $124,000 in August and traded at around $116,000 in September. Verified reports link these gains to political announcements, market optimism about rate cuts, and higher institutional flows.
The next measurable points to watch are official Fed nomination decisions, calendar dates for policy meetings, and real-time market responses to new White House statements.
Source: https://zycrypto.com/trumps-fed-ambitions-ignite-crypto-buzz-is-a-bitcoin-price-shock-coming/