Trump's Pressure on the Fed Works for Bitcoin: Grayscale Report Highlights
A major management company outlined the main theses for further growth of bitcoin 
“RBC-Crypto” does not provide investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
The White House's pressure on the Federal Reserve System (FRS) and the growing US national debt are the main fundamental investment theses for Bitcoin, according to analysts at the capital management company Grayscale, which published a report for August. In their opinion, this is due to the role of the main cryptocurrency as an alternative monetary system with predictable and transparent rules, which is especially relevant given the current economic uncertainty, especially in the US.
Grayscale has been launching private funds since 2013 that allow accredited investors to trade cryptocurrencies in the form of shares in these funds. The largest of these are the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE). Both funds were converted into full-fledged exchange-traded products (spot ETFs) in 2024. They manage $25 billion in bitcoin and $4.5 billion in ether, according to Sosovalue as of September 10.
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In the last month of summer, many cryptocurrencies other than Bitcoin showed better price dynamics than BTC. For example, the price of Ethereum increased by about 19% in August, while Bitcoin fell by 6.5%, according to TradingView.
BTC/USD
112 330 -200 (-0.18%) OKH Sep 10 14:44:43 1d 3d 1m 3m 1g 5l
Many investors perceived this dynamic as the beginning of the so-called altcoin season, when cryptocurrencies significantly outpace the dynamics of the Bitcoin rate. In the report, Grayscale analysts suggest moving away from short-term forecasts and focusing on long-term trends.
US National Debt
Growing government debt is nothing new for forecasting the growth of Bitcoin, the level of which constantly breaks records – for example, in the summer it exceeded $ 37 trillion or about 130% of GDP. However, Grayscale noted another important thesis, which is not so popular in the crypto space yet – pressure on the Fed from the current administration of US President Donald Trump and the fiscal policy of the regulator.
Grayscale acknowledged the Trump team's efforts to regulate the crypto market as useful. But the actions aimed at fixing a high level of budget deficit for the next decade (One Big Beautiful Bill Act), instead of reducing it, raise concerns among analysts.
Pressure on the Fed
Against this backdrop, Grayscale analysts also paid special attention to the Trump administration’s pressure on the Fed and its Chairman Jerome Powell. The White House has repeatedly demanded lower rates. In August, threats that could undermine the Fed’s independence took concrete form: an attempt was made to remove one of the members of the Board of Governors, Lisa Cook. Although such measures may be politically advantageous in the short term, Grayscale believes that they undermine confidence in the country’s main financial regulator and carry long-term risks for the economy.
Grayscale analysts explained this position by the fact that modern economies are based on fiat currencies, the value of which is provided not by goods, but by trust in the issuer — the state. History has repeatedly demonstrated that governments can abuse this trust to solve short-term problems, starting the printing press and provoking inflation.
Grayscale notes that to prevent such problems, developed countries have built a system of checks and balances. The key element is an independent central bank, in the case of the United States, the Federal Reserve, with a clear mandate to ensure economic stability. And now the government is preventing the Fed from pursuing an independent monetary policy.
From this perspective, Bitcoin is a monetary system based on transparent rules and predictable supply growth. And when investors lose confidence in the institutions that protect currencies, they turn to alternatives that can be trusted.
“Unless policymakers take steps to strengthen the institutions that support fiat currencies, demand for Bitcoin could continue to grow,” Grayscale concluded.
Source: cryptonews.net
