Bitcoin rises 1% as Trump intensifies pressure on Powell and the Fed

Amid escalating tensions between President Donald Trump and Federal Reserve Chairman Jerome Powell, Bitcoin rose by 1% on Monday, reflecting growing demand for secure assets amid political uncertainty. BTC has reached $88,080 currently, remaining within the range of $87,700 to $90,600 over the past 24 hours, indicating market volatility and buyers seeking protection against economic shocks.

Bitcoin’s movement has deviated from its usual pattern of following Nasdaq trends. Currently, while Nasdaq futures are down 0.8% and the USD index has fallen to 99.00 from a peak of 99.26, cryptocurrencies continue to rise—signaling that investors are seeking alternative assets amid intensifying political conflict.

Market Reaction to Trump-Powell Clash

The decline in Nasdaq futures by 0.8% and S&P 500 futures by 0.5% shows market concern last week, alongside the USD index dropping to its lowest levels. Gold, traditionally a safe haven, hit a record high of over $5,500 per ounce—a 15-year high indicating widespread demand for hard assets.

The anomaly lies in Bitcoin’s performance and traditional safe havens. While BTC typically moves in tandem with tech stocks, this disconnection suggests investors are viewing crypto as a new form of protection against political interference in monetary policy.

Trump’s Persistent Push for Aggressive Rate Cuts

Trump’s campaign to accelerate interest rate cuts is not new. Since taking office in 2025, he has repeatedly urged the Fed to implement more aggressive rate reductions. The president links economic growth to lower rates and dismisses the Fed’s response as “indifferent” or ineffective.

Last month, the Fed cut rates by 25 basis points, setting the rate at 3.5%. However, the administration continues to wait for larger cuts, while Powell and his team remain cautious, still considering lingering inflation concerns.

Political pressure has escalated to the point where the Trump administration has threatened to launch criminal charges against Powell, calling it a politically motivated attack. Powell has denied the accusations, issuing a statement that these claims aim to undermine Fed independence.

Bitcoin as an Anti-Establishment Asset in Times of Uncertainty

Bitcoin’s movement reflects deeper investor concerns about central bank independence and monetary policy integrity. Crypto advocates have long supported BTC as an anti-establishment asset—a protection against government overreach and currency debasement.

Currently, this perception appears to be gaining renewed interest. Investors worried about politicization of monetary policy are turning to Bitcoin and other hard assets like gold as insurance against worst-case scenarios.

Historical Warning: Turkey’s Lira Collapse

Turkey’s experience offers significant warnings. In recent years, aggressive intervention by President Recep Tayyip Erdogan in the independence of the Turkish Central Bank led to substantial currency depreciation and economic instability. The Turkish lira has fallen sharply from levels seen 10-15 years ago.

While the dollar’s position as a global reserve currency has protected it from the worst consequences, ongoing political pressure on the Fed could pose long-term risks to dollar credibility and US financial system stability.

Market Implications and Investor Takeaway

The disconnection of Bitcoin from Nasdaq during this period indicates a structural shift in how investors view risk and value preservation. Cryptocurrency is no longer just a technical asset—it has become a political statement and a hedging tool against policy risks.

For buyers, this scenario offers two possibilities: One, the Fed continues its cautious approach, disappointing Trump but maintaining institutional credibility. Two, political pressure increases, leading to faster rate cuts, which could provide short-term boosts but may cause long-term inflation and currency concerns.

Bitcoin remains in the $88,000 range, awaiting the next catalyst from Fed policy announcements or further escalation in the Trump-Powell conflict. Investors concerned about monetary policy independence will continue seeking alternative stores of value, driving demand for Bitcoin, gold, and other hard assets outside government control.