Bitcoin’s price has surged in recent days amid a wave of developments surrounding U.S. President Donald Trump’s nomination for the Federal Reserve Board, signaling renewed momentum for the cryptocurrency market. On August 7, 2025, Bitcoin surpassed the 115,000 USDT threshold, trading at 115,101.17 USDT, reflecting a 1.89% increase over the previous 24 hours [7]. The rally follows a series of announcements and executive actions by Trump that have signaled a more favorable regulatory environment for digital assets.
One of the most notable moves came on August 7, when Trump announced plans to sign an executive order penalizing banks that block Bitcoin transactions. This measure is intended to enhance banking access for digital assets and reduce institutional resistance to their adoption. Markets interpreted the move as a clear endorsement of Bitcoin’s role in the broader financial system [2]. The White House has not yet released the full text of the proposed executive order, but analysts speculate it could include incentives for financial institutions to facilitate crypto transactions and penalties for those that discriminate against digital assets [1].
Simultaneously, Trump’s nomination of a new Federal Reserve Board member has added to the optimism surrounding Bitcoin’s future. On July 29, Trump confirmed plans to appoint a new member to the Federal Open Market Committee (FOMC) to replace a recent vacancy left by a resigning board member. The appointment of a Fed member who is more sympathetic to digital assets could influence the broader regulatory climate for cryptocurrencies [5]. This is particularly significant given the central bank’s role in shaping monetary policy and interest rates, which directly impact asset valuations across the market.
Earlier in the week, on August 6, a major technology company was reported to be increasing its Bitcoin reserves, further reinforcing the perception that institutional adoption of the cryptocurrency is on the rise [3]. The company has not disclosed the exact amount or timing of its purchases, but the move aligns with broader trends in the asset management sector, where Bitcoin is increasingly being considered as a strategic reserve asset.
Analysts have also highlighted the potential implications of Trump’s broader economic strategy on the Fed and the cryptocurrency market. In a recent commentary, a financial firm noted that the U.S. administration’s focus on stimulating private sector credit cycles through lower interest rates could indirectly benefit Bitcoin and other digital assets. However, the report also cautioned that undermining the Fed’s independence could pose long-term risks to market stability [8]. The Federal Reserve’s independence is currently safeguarded by its governance structure, congressional oversight, and market forces, which provide checks against direct political interference [8].
The growing integration of Bitcoin into mainstream financial products has also gained momentum. On August 3, reports indicated that Bitcoin and crypto-related stocks were rallying in anticipation of Trump’s planned executive order opening 401(k) retirement plans to alternative assets. While the full details of the order have not been released, the mere expectation of regulatory changes has fueled speculation that Bitcoin could become a permitted investment in retirement portfolios [1].
Despite these positive developments, the broader cryptocurrency market has not been without challenges. Earlier in July, Binance data showed a decline in leverage usage across the market, raising questions about whether a major correction was approaching [9]. However, the recent surge in Bitcoin’s price suggests that market sentiment has remained resilient in the face of such risks.
As the crypto market continues to navigate a shifting regulatory landscape, Trump’s executive actions and Fed nominations appear to be playing a key role in shaping the trajectory of Bitcoin’s price. The coming months will likely determine whether these developments translate into sustained momentum for the cryptocurrency or if broader market forces will reassert themselves.
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[1] https://coinmarketcap.com/community/articles/689506e7a023ec4608e1da24/
