- Bitcoin faces mounting pressure from political and geopolitical tensions and economic challenges.
- Democrats’ control of Congress could complicate Trump’s crypto-friendly agenda.
- Bitcoin must hold the $65K-$77K support zone to avoid further losses to $57,700.
Bitcoin is under pressure as political tensions and economic issues weigh on the crypto market. When Donald Trump won the 2024 US presidential election, Bitcoin rallied as investors anticipated crypto-friendly policies from his administration. However, market conditions have changed significantly.
Trade tensions with China, the US-Iran conflict, the Binance security incident, and Democrats taking control of Congress have created fresh uncertainty in financial markets.
Bitcoin is currently trading around $73,700, with traders closely watching a critical price zone between $65,000 and $77,000. A breakdown below this area could expose Bitcoin to its next major downside target of $57,700.
Trump’s Election Victory Helped Bitcoin Rise
Bitcoin’s price surged 2X following Trump’s victory in November 2024. On November 4, 2024, Bitcoin traded at around $66,803 before surging to $77,252 four days later. By the second week of November, Bitcoin had reached $90,000 for the first time, amid optimism surrounding Trump’s election victory.
During his campaign, Trump promised to:
- Make the US a global leader in crypto.
- Create a national Bitcoin reserve.
- Introduce more crypto-friendly regulations for crypto companies.
These promises influenced investors and boosted their confidence in the crypto market.
US Bitcoin Reserve Created More Optimism
On March 6, 2025, Trump signed an executive order establishing a US Strategic Bitcoin Reserve. The order directed the government to retain eligible Bitcoin seized through legal proceedings rather than sell those holdings.
The announcement strengthened investor optimism and provided another source of support for Bitcoin’s long-term outlook.
China Tariffs and Political Controversies Hurt Market Confidence
Meanwhile, Bitcoin’s positive momentum later encountered several challenges. In April 2025, Trump introduced new tariffs on imported goods, escalating trade tensions between the US and China.
In response, China imposed additional tariffs on American products. These developments unsettled global financial markets, triggering selling pressure across risk assets. Bitcoin subsequently fell to $74,500 from $88,466.
Source: TradingView
US-Iran Conflict Raises Inflation Concerns
The US-Iran conflict introduced another challenge for financial markets. Rising oil prices fuel inflation and make it more difficult for the Federal Reserve to lower interest rates.
Higher interest rates reduce demand for risky investments such as Bitcoin, as investors shift towards safer assets offering more attractive returns.
In other words, persistent inflation and tighter monetary policy create additional downside pressure on Bitcoin.
Related: What Would Bitcoin Look Like Without the Trump Effect?
Binance Security Incident Adds More Pressure
The recent security incident at Binance, the world’s largest crypto exchange, has added to ongoing market pressure. Hackers stole $6.34 billion in Bitcoin and Ethereum from the exchange on October 29, and the market has remained bearish ever since.
Binance intercepted $2.85 billion and replenished the affected assets rather than passing the losses on to users. Despite these measures, the incident has contributed to negative market sentiment.
Democrats Take Control of Congress: What Does This Mean for Crypto?
One of the biggest political developments is the Democrats’ victory in the November 2026 midterm elections. They secured control of both the House of Representatives and the Senate, weakening Trump’s ability to advance his legislative agenda.
This political shift also proved bearish for the crypto industry.
Under Republican control, Trump’s administration had greater legislative support for pursuing its crypto-friendly agenda. With Democrats controlling Congress, passing new crypto legislation faces greater political obstacles.
This does not mean Democrats will automatically reverse Trump’s crypto policies. Several Democratic lawmakers also support crypto innovation and regulatory development.
However, competing political priorities and disagreements over financial regulation create additional obstacles for the industry.
Bitcoin’s $57,700 Price Target: What Happens Next?
Bitcoin is currently trading around $74,492, within an important technical area identified as a Fair Value Gap (FVG). The highlighted zone stretches from approximately $65,000 to $77,000, with a midpoint of around $71,467.
A Fair Value Gap is a price area created by an imbalance between buying and selling activity during a rapid market move. Traders monitor these zones because prices often revisit them.
There are two key scenarios for Bitcoin:
1. Bitcoin Holds the $65,000–$77,000 Zone
If buyers defend this area, Bitcoin could maintain its recovery structure and attempt another move higher. A recovery above the zone would weaken the bearish outlook and restore buyer confidence.
2. Bitcoin Breaks Below the Zone
A breakdown below this technical area would strengthen the bearish outlook. The next major downside target stands at around $57,700, making this level an important price objective for traders monitoring continued selling pressure.
Rising interest rates, geopolitical uncertainty, and political tensions add to the challenges facing Bitcoin’s recovery.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
