Bitcoin Stays Steady Amid Increased Focus on Federal Reserve Independence

Bitcoin’s price remained stable during the recent crisis surrounding the Federal Reserve’s independence despite President Trump’s threats against Chair Jerome Powell. The cryptocurrency saw a modest gain of 0.60%, fluctuating within a narrow range. Trading volumes dipped significantly due to holiday closures, while Bitcoin’s market capitalisation and BTC futures interest showed slight increases. The influence of political narratives could increase volatility in Bitcoin’s price, questioning its original separation from central banking.

Bitcoin’s price showed resilience over the recent Good Friday despite market unrest following President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell, where he threatened potential dismissal due to unsatisfactory interest rate management. Traditional markets were impacted, but Bitcoin’s value remained stable, indicating its independence from central banking turmoil.

In the past 24 hours, Bitcoin recorded a minor increase of 0.60%, reaching $84,533.15. The cryptocurrency fluctuated within a narrow band, between $83,749.75 and $85,449.07, maintaining a seven-day upward trend of 3.21%. Trading volume fell significantly by 29.26% to $17.94 billion due to the closure of traditional markets for the holiday, while its market capitalisation grew by 0.56% to $1.67 trillion.

Although Bitcoin’s dominance slipped slightly to 63.86%, down by 0.24%, the open interest in BTC futures rose by 1.34% to $54.88 billion, indicating cautious trading engagement. There were minimal liquidations, totalling just $163,990, with the majority stemming from long positions, reflecting subdued trading during this holiday period.

The ongoing discourse regarding Trump potentially undermining the independence of the Federal Reserve invites scrutiny on Bitcoin’s volatility. While Bitcoin was designed to counteract central banking, the political narratives influencing monetary policies could affect its price stability. Doug Colkitt, an expert in finance, notes that this political interference increases uncertainty in monetary decisions.

The independence of the Federal Reserve significantly impacts traditional asset valuations tied to interest rates. The pressing concern is whether Bitcoin will maintain its distinct character, free from central banks’ and politicians’ influence, as originally intended by its creator, Satoshi Nakamoto. Colkitt further emphasises the urgent need for robust financial frameworks and regulations that remain constant, irrespective of political changes.