Bitcoin Surges as Trump Calms Fed Fight and Trade Tensions

​Bitcoin is climbing again—and this time, it's riding a wave of political relief.

The world's largest cryptocurrency jumped about 3%, hitting $93,800, after President Trump said he has no intention of firing Federal Reserve Chair Jerome Powell, soothing investor fears about central bank independence​.

That reassurance came alongside fresh optimism that Trump may also be looking to cool off the U.S.-China tariff battle. Treasury Secretary Scott Bessent reportedly told investors the current trade standoff is “unsustainable” and both countries will have to find a path to de-escalation.

Together, the shift in tone lit a fire under Bitcoin—and the momentum spread across the crypto space. Ether, XRP, and Solana all climbed in tandem.

Further fueling the rally: a massive $936 million in inflows to U.S.-listed Bitcoin ETFs on Tuesday, the third-highest day of the year. And behind the scenes, rumors swirled that Cantor Fitzgerald, Tether, and SoftBank are working on a $3 billion crypto investment vehicle.

But not everyone’s convinced the rally will stick. Stefan von Haenisch of Bitgo warned that Bitcoin looks overbought and may pull back to around $88,000. Meanwhile, QR Capital flagged a shift in liquidity from spot trading to futures—suggesting leveraged bets are back in play, which could increase volatility.

​Bottom line: With Trump softening on both the Fed and tariffs, Bitcoin is rallying hard. But with leverage rising and sentiment running hot, traders might want to buckle up.