Bitcoin Rallies Despite Market Turmoil Amid Trump’s Pressure on Fed Chair Powell

While U.S. financial markets wavered following President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell, Bitcoin (BTC) surged, reinforcing its position as a hedge against traditional financial risks.

Trump Targets Powell, Stoking Market Volatility

President Trump intensified his pressure on Federal Reserve Chairman Jerome Powell, calling him a “total loser” on his social media platform, Truth Social, and demanding aggressive rate cuts. This political move raised concerns about the central bank’s independence, fueling uncertainty across traditional financial markets.

Massive Short Liquidations Fuel Upward Momentum

According to data from CoinGlass, approximately $118.23 million in Bitcoin derivatives positions were liquidated in the past 24 hours—80% of which were short positions. This indicates that many traders had bet on a price drop but were caught off-guard by Bitcoin's unexpected rally.

Across the broader crypto market, total liquidations amounted to $274.54 million, signaling heightened short-term volatility.

Liquidity Expansion Driving Flight to Hard Assets

Vincent Liu, Chief Investment Officer at Kronos Research, commented that “rising global liquidity—driven by increased M2 money supply and a weakening U.S. dollar—is prompting a shift of capital toward hard assets like Bitcoin and gold.”

Bitcoin’s 24-hour trading volume exceeded $24.5 billion, while gold prices also surged to a record high of $3,400, reflecting growing investor preference for non-sovereign stores of value amid market uncertainty.

Political Risk Accelerates Demand for Alternative Assets

Juan Leon, Senior Analyst at Bitwise, noted that "waning trust in the U.S. government and growing political risks are fueling demand for alternative assets like Bitcoin and gold.” He added that “Trump’s attacks on the Fed’s independence are triggering a broader market reaction, which could serve as a bullish catalyst for Bitcoin.”

Market Sentiment Improves Slightly

The Fear & Greed Index provided by Alternative.me showed a reading of 47, indicating neutral sentiment, up from the previous day. This suggests cautious optimism may be emerging in the market as uncertainty begins to stabilize.

• The Federal Reserve’s next policy moves will likely influence crypto price action in the near term.

• Political developments, including Fed leadership and election dynamics, are becoming increasingly relevant for macro-crypto correlations.

• The simultaneous rally in Bitcoin and gold suggests growing investor appetite for non-correlated, hard assets.