Bitcoin Resilience Amidst Equity Market Decline and Trump’s Fed Criticism

Bitcoin’s price neared $87,300 as equity markets fell, driven by Trump’s attacks on Fed Chair Powell to lower interest rates. Gold reached a record high of $3,442 per ounce, while altcoins had mixed performances. Analysts see Bitcoin’s stability as indicative of growing investments in alternative assets amid decreased confidence in government institutions.

Bitcoin’s valuation approached $87,300 on Monday, defying the negative impact on equity markets due to U.S. President Donald Trump’s criticisms of Federal Reserve Chair Jerome Powell. Trump insisted that the Fed should reduce interest rates, labelling Powell as “Mr. Too Late.” This criticism targets Powell’s handling of inflation during the pandemic, suggesting a lag in response to economic conditions.

Bitcoin recorded a 2.9% increase in the last 24 hours, according to CoinGecko, while altcoins experienced mixed results; Solana declined by 1.2% to $135, and Dogecoin increased by 1.6%. XRP remained relatively stable. Concurrently, the U.S. Dollar Index (DXY) saw a slight recovery from its February 2022 lows, closing around 98.3 after previously dipping to 98.

The shift towards Bitcoin and gold as safe-haven investments emerges amid growing scepticism regarding the Fed’s decision-making and the overall stability of the financial system, as noted by Bitwise Senior Analyst Juan Leon. He remarked that waning trust in government institutions is prompting a search for alternative stores of value like Bitcoin and gold.

Gold’s price surged 3.9% to a record high of $3,442 per ounce, while the S&P 500 dropped 2.8% and the Nasdaq fell by 3%. Despite volatility, Bitcoin has demonstrated resilience since Trump’s recent trade tariffs announcement affecting 180 nations, according to Steven Lubka from Swan Bitcoin. He highlighted Bitcoin’s performance as notably stronger than in previous instances, indicating potential divergence from traditional risk assets.

Trump’s discontent with Powell intensified after the chair expressed caution on monetary policy and economic forecasts at the Economic Club of Chicago. Trump implied that Powell’s removal from the Fed is overdue, hinting at an unprecedented conflict ahead between the White House and the Federal Reserve.