Bitcoin Eyes $135K — Here’s Why Crypto No Longer Cares About Fed Rate Cuts

Key Insights

• US President Donald Trump continues to pressure FED Chair Jerome Powell to lower interest rates.
• Lower interest rates have historically increased risk-taking behavior among investors and pumped prices across financial markets.
• Amid this push, Powell sees no need to lower interest rates yet and is resisting the pressure.
• Still, the crypto market doesn’t seem to care and is rallying anyway.
• There are increasing indications that Bitcoin will make a new ATH within the next 100 days.

Over the last few years, the financial markets have hung on every whisper from the central bank.

However, crypto is now showing that it can stand on its own two feet.

Despite the repeated calls from US president Donald Trump for FED Chair Jerome Powell to lower interest rates, the Federal Reserve remains unmoved.

Still, crypto doesn’t seem to care about whether interest rates rise or fall.

Instead, Bitcoin recently surged past $105,000, and there are growing indications that the price of the flagship cryptocurrency will hit $135,000 in the next 100 days.

Trump Turns Up the Heat on Powell

Donald Trump has always been vocal about the Federal Reserve’s policies.

He has repeatedly clashed with Chair Jerome Powell over the matter, and in recent months, he has pushed harder for lower interest rates.

The US president insists that cheaper credit is important for America’s economic growth.

He even took to Truth Social to claim that inflation was no longer a problem, amid falling prices in gas, energy and groceries.

The highlight of his message was that the FED must follow in the footsteps of Europe and China by slashing rates.

However, Powell doesn't seem to care what Trump thinks.

The Fed has repeatedly made it clear that rate cuts are not on the table until there’s a solid reason to do so. It doesn’t see one yet, and interest rates will remain unchanged.

Keep in mind that inflation is currently down from its 2022 peaks and remains above the Fed’s 2% target.

This alone is enough for officials to keep interest rates steady, even in the face of political pressure.

Crypto Doesn’t Seem To Care

Not long ago, crypto prices dropped or rose on the mere news of higher or lower interest rates.

Traders hoped that aggressive rate cuts would flood markets with liquidity and give Bitcoin and other digital assets a much-needed boost.

Even crypto-related prediction platforms like Kalshi forecasted up to four cuts in 2025 at one point.

However, those hopes have since cooled, and Kalshi has lowered its prediction to just two cuts for the year.

However, instead of panicking, the crypto market seems to have moved on.

Bitcoin itself has broken through the $105,000 mark and is eyeing its $109,000 all time high.

Possible reasons for this decoupling might have been from the recent progress in US-China Trade Relations, where both countries have agreed to put a pause on the ongoing trade tensions.

So far, Bitcoin’s performance shows that its price isn’t merely being propped up by the hope of easier monetary policy.

Instead, structural progress and renewed investor interest have been real influences for its price.

Market Indicators Show A $135k Bitcoin Soon

Despite the back and forth in interest rate decisions, there’s no shortage of bullish indicators across the market.

One of the most telling signs that momentum will continue is the major fall in the CBOE Volatility Index (VIX) according to Google Finance.

This index is often referred to as the market’s “fear gauge,” and has dropped from a peak of 60 earlier this year to just 20: Its average reading over the last 30 years.

This volatility drop shows that investors are becoming more confident and are moving into higher-risk assets like equities and crypto.

In fact, according to economist Timothy Peterson, a low VIX typically shows a prolonged "risk-on" environment.

This historically correlates with Bitcoin price rallies and according to Peterson's model, Bitcoin could hit $135,000 within the next 100 days if these favorable conditions continue.

On-chain data even shows that CryptoQuant’s Bitcoin Bull Score Index has surged from 20 to 80 in just a few weeks.

In the same vein, the Fear & Greed Index for Bitcoin has climbed to 53.3%.

While this level is still below the “greed” mark, the upward trend shows that investors are indeed optimistic.

All of the above shows that Bitcoin could be gearing up for another leg up to its all-time high of around $110,000.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.