Bitcoin price rebounds as President Donald Trump attacks Federal Reserve Chairman Jerome Powell

Political intrigue in the United States is once more proving to be a major market mover as Bitcoin keeps its erratic trip.

Political intrigue in the United States is once more proving to be a major market mover as Bitcoin keeps its erratic trip. President Donald Trump’s outspoken attacks on Federal Reserve Chairman Jerome Powell have come before the most recent rebound in the price of Bitcoin.

The U.S. dollar has suffered as Trump’s remarks create doubt about future monetary policy, hence opening the path for the comeback of Bitcoin.

Trump Revives Criticism of Powell

There has been a public spat between Trump and Jerome Powell, who was appointed by him during his presidency, a long-standing one. The President lately revived his criticism, charging Powell with failing to stabilize the economy and acting too slowly on interest rates.

Trump’s remarks became popular in financial circles since they coincide with a politically tense period with the 2024 election behind us and yet unresolved economic concerns. His remarks have once more questioned the Federal Reserve’s direction and autonomy.

Dollar Weakens Amid Political Tension

Trump’s forceful posture has sparked worries about a politicized Fed, a concept markets do not take lightly. Investors responded by withdrawing from the U.S. dollar, which has exhibited indications of depreciating versus important world currencies. Usually, a softer dollar increases the risk on assets like gold and Bitcoin since they become more appealing in relation.

Driven more by impression than by actual policy changes, this decline in dollar strength creates space for alternative assets like Bitcoin to flourish. Bitcoin’s distributed appeal is more compelling when conventional financial markets flutter under political pressure.

Bitcoin Soars Past $65K

After a period of stagnation, Bitcoin had a huge price surge following the revived Trump-Powell drama, momentarily returning to the $65,000 mark. Analysts believe this is a direct response to changing macroeconomic narratives, not only a technical bounce.

The market has seen a familiar pattern: crypto assets, especially Bitcoin, step in as an alternate store of value as faith in centralized financial systems wanes. Once more being presented as “digital gold,” Bitcoin is underlined as having inflation instability and political intervention in mind.

What This Means for Investors

This evolution emphasizes to crypto investors the increasing link between political events and digital asset performance. Although some may consider Trump’s remarks on Powell as simply bluster, the response of the market indicates that even apparent challenges to central bank autonomy can affect the world economy.

While the volatility of Bitcoin presents chances for short-term speculators, long-term investors are observing more general changes in monetary trust. The basic argument of Bitcoin decentralization may remain relevant as conventional institutions come under pressure from all directions.

News data source: kdj.com

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