Trump’s Fed Independence Remarks Drive Bitcoin Volatility
Recent remarks by former President Donald Trump on Federal Reserve Chair Jerome Powell and Fed independence have triggered sharp swings in cryptocurrency markets. In early trading, a tweet denying plans to fire Powell dashed hopes for looser monetary policy and sent Bitcoin down about 1.5%. Later, Trump’s broader criticisms of Fed autonomy fueled uncertainty, and Bitcoin rebounded over 2% to test $119,500. Traders now await Fed minutes and upcoming CPI data for fresh clues on interest rate trajectories. Market watchers say any political interference that undermines confidence in fiat could reinforce Bitcoin’s appeal as a hedge, supporting its “digital gold” role. Crypto traders should monitor developments in Fed policy independence and political risk, as these factors may drive further price swings and trading opportunities.
Bullish
Trump’s comments on Fed independence first sparked a 1.5% drop in Bitcoin by dashing expectations of looser policy, then drove a 2% rally as political criticism heightened uncertainty. In the short term, these swings create trading opportunities amid volatility. Over the longer term, any political interference that undermines confidence in fiat currencies could strengthen Bitcoin’s role as digital gold, supporting demand and price resilience. Therefore, the net impact on Bitcoin is bullish.