Will the price of Bitcoin continue to rise after Trump abandons the plan to fire Powell?

Bitcoin traded above $93,500 on Tuesday night in New York, extending its rise to over 11% for the week and reaching a new monthly high.

This rise occurs in the context of easing concerns about trade wars, along with signals suggesting that U.S. monetary policy may be shifting — all of which have fueled a wave of investment into risky assets. At the same time, U.S. stock futures also rose sharply in after-hours trading, with the Dow Jones, S&P 500, and Nasdaq all recording impressive gains.

The rally comes as investors reassess the course of the U.S.-China trade dispute following conciliatory remarks from U.S. officials, along with reports that President Donald Trump softened his tone on firing Jerome Powell. Federal Reserve Chairman (Fed).

BTC price chart 4 hours | Source: TradingviewThis combination has helped improve sentiment in the stock and commodity markets, as both Bitcoin and gold have recorded significant fluctuations.

Bitcoin rose 5.6% during the day, in line with the trading trend based on macroeconomic factors. The price of gold initially surged to $3,500 before dropping to $3,300. Such volatility has led some analysts to suggest that it is a sign of capital flow shifting towards digital assets.

"Both assets follow the global M2 money supply growth rate, but in different ways. Gold reacts more immediately, while Bitcoin typically has a lag of about 90 days. History shows that strong rallies in gold often signal upcoming rallies in Bitcoin and can also trigger a reversal in gold just as Bitcoin starts to accelerate," said Ryan McMillin, Chief Investment Officer at Merkle Tree Capital, in a statement to investors on Tuesday.

According to McMillin, gold reversed strongly overnight signaling that investors are turning to seek a store of value in Bitcoin – an asset that many believe is undervalued compared to gold amid rising inflation expectations and loose monetary policy.

"In the context of the ongoing global trade war, remember that the main tool governments use to compete is their money printer. The M2 index has the potential to rise sharply, dragging both gold and Bitcoin along with it," McMillin said.

The Fed's next interest rate decision and the ongoing fiscal negotiations between Washington and Beijing will be key factors affecting the price of Bitcoin in the coming weeks.

Although the price is rising sharply, some traders remain cautious, pointing out that the funding rate ( funding fee ) is at a record high in history and on-chain activity is declining – factors that could hinder the rise.

However, the current macro story seems to be shifting in favor of Bitcoin — at least for the time being.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

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