Bitcoin is currently on the rise again. The price is approaching $100,000. What’s behind it?
Bitcoin has increased significantly in value since the beginning of May 2025, approaching the $100,000 mark. This was triggered by monetary policy signals from the U.S. Federal Reserve and political pressure from the White House.
US Federal Reserve Leaves Interest Rates Unchanged
On May 7, the US Federal Reserve (Fed) left its key interest rate unchanged at 4.25 to 4.5 percent. This was in line with financial market expectations. At the same time, it warned of persistently high inflation, declining consumer confidence, and rising unemployment – ​​signs that the US economy is losing momentum.
Many investors interpret this as a sign of imminent interest rate cuts. Markets already expect the Fed to significantly lower its key interest rate by the end of the year. Such prospects are boosting Bitcoin: lower interest rates can weaken the dollar and make alternative investments such as cryptocurrencies more attractive.
Political Pressure on the Federal Reserve Grows
US politics is also playing a role: Former President Donald Trump publicly criticized Fed Chairman Jerome Powell for not lowering interest rates more quickly. He even threatened to remove Powell from office if interest rate policy remains unchanged. Added to this is the political uncertainty caused by tariffs and the associated trade conflicts. Such unusual political pressure is unsettling the markets. Many investors are therefore turning to Bitcoin in the hope of protection against inflation, political influence, and possible currency devaluation.
Bitcoin Gains
After the Fed’s decision, Bitcoin was initially volatile but then quickly climbed. Within a few days, the price rose from around $96,000 to over $99,000. Institutional investors are also continuing to invest: US Bitcoin ETFs are recording billions in fresh capital. Blockchain data shows that demand has increased significantly since the end of April.
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