Key points:
- Bitcoin tops $87,500 as Trump vs. Powell fuels deals
- Crypto market adds 3% in value, volume surges 40%
- Traders reenter risk assets as Fed uncertainty looms
Crypto is a risk asset class and, as such, it tends to benefit from lower interest rates. Such prospects helped lift the price of Bitcoin on Monday.
📣 Bitcoin Rallies as Trump-Powell Feud Gets Real
- Bitcoin’s back on the move and the headlines are doing the heavy lifting. Bitcoin
BTCUSD gained 3% on Monday, cruising past $87,500 as traders digested the brewing conflict between President Donald Trump and Fed Chair Jay Powell, a political standoff that’s rekindling bets on lower interest rates. - Crypto is very much a risk-on asset, and in this case, the risk is political — but the trade is familiar. When rate cut odds rise, Bitcoin tends to follow. And with Trump openly criticizing Powell for not slashing rates fast enough — and actively pursuing the idea of replacing him — markets are starting to price in policy shake-up potential at the Federal Reserve.
⚖️ Fed Independence Questioned
- “If we had a Fed Chairman that understood what he was doing, interest rates would be coming down too,” Trump said on Friday. “The president and his team will continue to study that matter,” White House economic adviser Kevin Hassett said in response to a question whether firing Powell “is an option.”
- Under the law, the Fed chief can’t be fired by the President. “We’re not removable except for cause,” Powell said. “Fed independence has pretty broad support across both political parties and on both sides of the hill.”
📊 Crypto Volume Surges as Traders Engage
- Besides Bitcoin, which hit a three-week high, other digital assets also got a lift. Ethereum ETHUSD, the second-largest coin, was up about 3% but didn’t really make any substantial progress. It was mostly a sideways move in the mid-term. The overall coin market valuation had added 3% halfway through Monday.
- Another indicator, though, was flashing more action. Volume picked up by a solid 40%, showing that traders are still there and ready to strike deals. As much as $70 billion in trading volume was exchanged on Monday.
