The price of Bitcoin has skyrocketed past $91,000 as institutional capital flows into the crypto market amid renewed political tensions over U.S. monetary policy. President Donald Trump’s recent criticism of Federal Reserve Chair Jerome Powell for politicizing rate decisions and hindering economic recovery has fueled volatility in traditional markets and pushed risk-sensitive investors towards digital assets. As a result, Bitcoin surged to its highest level in 52 days, reaching $91,200 on Tuesday.
In response to Trump’s comments, the U.S. Dollar Index dropped to its lowest level since 2022, and 10-year Treasury yields rose above 4.4%, reflecting concerns about political interference in financial markets. The increasing interest in cryptocurrencies is also evident in the inflows into Spot Bitcoin ETFs, which reached $381 million on Monday, the highest single-day acquisition since January 2025. Major asset managers such as Ark Invest, BlackRock, and Fidelity have driven this surge in institutional investment in crypto.
The appointment of Paul Atkins as SEC Chair, known for his favorable stance towards markets, has further boosted confidence in the crypto industry. Atkins has promised to prioritize a regulatory framework that supports innovation in the crypto space, indicating a departure from the strict enforcement approach of his predecessor, Gary Gensler. This positive sentiment has contributed to the bullish outlook for Bitcoin, which could target the $94,000-$95,000 zone next if ETF demand continues and macro instability persists.
Technical analysis of Bitcoin’s price movement shows a breakout from a 3-week consolidation period, with BTC trading above key moving averages on the 12-hour chart. The Relative Strength Index (RSI) reading suggests that Bitcoin is currently overbought in the short term, but the bullish momentum is supported by the divergence from the RSI moving average. Traders are advised to watch the $87,900 level as the next major support, with a break below $88,500 potentially signaling a reversal in the trend. However, until then, the overall trajectory for Bitcoin remains tilted towards the upside.
