Bitcoin remained largely unaffected following former U.S. President Donald Trump’s sharp criticism of Federal Reserve Chair Jerome Powell. Despite Trump’s call for Powell’s removal due to his delayed approach on interest rate cuts, the leading cryptocurrency showed minimal movement — rising just 0.1% in the last 24 hours.
Trump, speaking on his platform Truth Social, said Powell was “too late” in responding to inflation and claimed his “termination cannot come fast enough.” His statement came after Powell warned of increased inflation and unemployment linked to Trump’s own tariffs on foreign countries.
Markets responded with caution. The S&P 500 ended the shortened trading week with a marginal gain of 0.1%, while the Nasdaq dipped 0.1%. Bitcoin, which has been seen as both a speculative asset and a hedge against inflation, remained flat.
Ira Auerbach, Head of Tandem at Offchain Labs and former Nasdaq Digital Assets Head, commented:
“Markets are extremely reactive to policy decisions from the White House and likely to stay that way. Trump’s push for aggressive rate cuts could reignite Bitcoin’s original narrative as a hedge against devaluation.”
Meanwhile, gold continues to be the asset of choice for those seeking safety. Its performance over the last 20 years, including dividends, now exceeds that of the S&P 500.
For the crypto industry, the picture is mixed. While macroeconomic instability persists, regulatory clarity under Trump’s administration has reportedly improved, encouraging more institutional interest in the sector.
Charles d’Haussy, CEO of the dYdX Foundation, added:
“It’s wise to let the current uncertainty settle, especially as new tariffs are implemented and global negotiations play out. Central banks are expected to act more clearly later this year.”
