By Key Points
- Bitcoin Price Surge After Trump Calms Fed Drama
- Bitcoin jumps 6% to cross $93,000 amid Fed chair job stability
- Trump clarifies he won’t fire Jerome Powell, calming markets
- Political uncertainty continues to influence Bitcoin movements
- Investors turn to Bitcoin as hedge against economic instability
Bitcoin has stormed past the $93,000 mark, regaining ground after a week of intense speculation. The catalyst? A surprising clarification from former U.S. President Donald Trump, who confirmed he does not intend to fire Federal Reserve Chair Jerome Powell—despite earlier tensions.
The crypto market, which has become more responsive to political and macroeconomic shifts, reacted swiftly. Within hours of Trump’s statement from the Oval Office, Bitcoin (BTC) surged nearly 6%, hitting $93,136.
This spike followed widespread rumors of Powell’s potential dismissal. These arose from Trump’s dissatisfaction with the Fed’s cautious stance on interest rate cuts. As trade war concerns mount and economic projections dim, Trump has been vocal about his desire for looser monetary policy.
The reassurances sent a strong signal to markets that major institutional shifts may be off the table for now, which helped stabilize investor sentiment—particularly in crypto, where uncertainty tends to drive volatility.
What’s striking is the correlation. When rumors of Powell’s firing surfaced, Bitcoin spiked. Now that Trump has clarified his stance, it’s spiked again—proving that BTC is being used more than ever as a hedge against the unpredictable nature of traditional finance.
You can read more about the earlier Trump-Powell Bitcoin clash that sent BTC to $87K for deeper context.
NEW: Bitcoin SMASHES past $93K as President Trump reaffirms executive order on Strategic Crypto Reserve, clarifying, “I love Bitcoin.” 🚀 pic.twitter.com/spB6Lz2uw6
— Swan (@Swan) March 2, 2025
Bitcoin Shows Strength Amid Institutional Distrust
Bitcoin’s latest rally is more than just a reaction to a single news headline—it reflects a growing shift in how investors perceive the asset.
The USD Index recently fell to a 3-year low, further highlighting concerns about the dollar’s strength under current leadership. Former BitMEX CEO Arthur Hayes summed it up bluntly:
Trump says he wants to fire JAYPOW – dollar dips, $BTC rips
Trump says he has no intention of firing JAYPOW – dollar rips, $BTC rips some more
Fuck yeah, this is the kind of price action we need degens.
— Arthur Hayes (@CryptoHayes) April 22, 2025
This volatile environment plays directly into Bitcoin’s narrative as a decentralized, inflation-resistant asset. As investors grapple with potential threats to the Fed’s independence and rising fiscal uncertainty, Bitcoin is increasingly being seen as a safe alternative.
Standard Chartered’s Head of Digital Asset Research, Geoff Kendrick, weighed in:
“Bitcoin is a hedge against both TradFi and US Treasury risks. The threat to remove Powell falls into Treasury risk—so the hedge is on.”
It’s not just institutional analysts. Retail investors and crypto advocates alike are leaning into this thesis. Nate Geraci, president of ETF Store, echoed the sentiment:
Bitcoin one of biggest winners from events over past several weeks IMO…
At least from a philosophical standpoint.
Further erosion of trust in governments & politicians will push people towards alternatives.
Not saying that’s good or bad, but think logical.
— Nate Geraci (@NateGeraci) April 22, 2025
That erosion of trust is translating directly into price action. With about 13 months left in Powell’s term and no immediate plans for replacement, markets may experience short-term calm. But the underlying anxiety remains.
As macroeconomic drama unfolds in Washington, Bitcoin continues to serve as a barometer for faith—or the lack thereof—in the traditional financial system.
Also, see how MetaPlanet’s growing Bitcoin holdings signal a long-term shift in corporate strategy amid market turbulence.
Macro Politics Keep Crypto Markets on Edge
The interplay between political decisions and crypto valuations isn’t new, but it’s getting more intense. From regulatory crackdowns to speculative Fed chair reshuffles, crypto is now deeply tied to global policy moves.
This month alone, we’ve seen major regulatory actions—like the Coinbase XRP futures approval by the CFTC, which sent ripples across altcoin markets. Meanwhile, internal watchdogs like ZachXBT have slammed overhyped token launches, calling out projects lacking substance in the face of major macro news.
And now, the Fed chair saga. Trump’s power over the Fed narrative isn’t just affecting traditional finance—it’s shaping crypto movements too.
With potential leadership shifts at regulatory bodies, including talks of Paul Atkins being floated for SEC Chairman, the entire landscape of U.S. crypto regulation may face a pivot. That only heightens Bitcoin’s role as a hedge against shifting sands in the financial system.
These macro-level developments will continue to keep crypto investors on their toes—and Bitcoin right in the center of it all.
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