Bitcoin Surges Past $93K Following Trump’s Comments on Fed Chair Powell

Bitcoin’s value surged past $93,000 after President Trump affirmed he would not dismiss Fed Chair Jerome Powell, coupled with softening stances on China trade. The shift in investor sentiment has seen Bitcoin possibly decoupling from tech stocks as ETFs post strong gains.

Bitcoin’s value increased significantly, surpassing $93,000, following President Trump’s declaration that he does not intend to dismiss Fed Chair Jerome Powell. Trump’s comments alleviated previous market tensions regarding Fed policy, reflecting a looser stance on China’s trade relations as well, which contributed to the cryptocurrency’s upward trajectory. As trading progressed, Bitcoin edged closer to $94,000, demonstrating its potential to stabilise in a changing investment landscape.

Previous remarks by Trump had ignited market concerns about the independence of the Federal Reserve, leading to increased investor anxiety. During this period, gold experienced a surge, nearing $3,500 due to market uncertainty. However, Bitcoin emerged as the focal point of trading activity, gaining momentum earlier in the day before Trump’s assertions catalysed its price growth above $93,000.

Market analysts noted a pivotal shift in Bitcoin’s trading behaviour, suggesting that it may be decoupling from traditional tech stocks. Historically, Bitcoin moved in sync with the Nasdaq index, but recent trends indicate it is beginning to self-determine its market performance. This shift could signify an evolving relationship between cryptocurrency assets and traditional market indices.

In parallel developments, the exchange-traded fund (ETF) market witnessed a resurgence, with US-listed spot Bitcoin ETFs recording impressive net inflows. Notably, a total of $381 million was reported in inflows on Monday, with robust performance continuing into Tuesday, amassing $719 million in total net inflows across all spot Bitcoin ETFs. Pending updates from BlackRock’s iShares Bitcoin Trust may further enhance these positive trends, potentially marking the strongest day for Bitcoin ETFs since January. Following the peak of $93,900, Bitcoin’s price subsequently adjusted to $92,700, maintaining a near 5% increase within a 24-hour timeframe.