Bitcoin $92,043.06 saw a 1% increase Monday afternoon in Hong Kong as President Donald Trump’s ongoing conflict with Federal Reserve Chairman Jerome Powell unsettled investors, leading to declines in both U.S. stock futures and the dollar index. Bitcoin surged to $92,000, yet remained within the price range established last week, which was between $89,000 and $95,000, according to data. Nasdaq futures declined by 0.8%, S&P 500 futures decreased by 0.5%, and the dollar index fell to 99.00, down from Friday’s high of 99.26.
BTC typically aligns with the Nasdaq, yet this time diverges, suggesting a surge in safe haven interest for the cryptocurrency – individuals seeking it as a “hideout” amidst the intensifying Trump-Powell conflict. BTC advocates have consistently celebrated the cryptocurrency as a counter-establishment asset and a safeguard against fiscal and monetary recklessness. Gold, often viewed as a traditional safe haven, surged to an unprecedented high of $4,600 per ounce. Tensions between the Fed and the White House intensified over the weekend following Powell’s revelation that the Trump administration had allegedly threatened him with a criminal indictment concerning the renovation of the central bank’s headquarters.
Powell characterized the indictment as politically driven, aimed at influencing the Fed to lower interest rates. Trump has consistently taken aim at Federal Reserve policies, especially its hesitance to significantly lower interest rates in an effort to stimulate economic growth. Since his 2025 inauguration, he has consistently pressed Fed Chair Jerome Powell to implement more aggressive rate cuts, labeling him a “numbskull” and hinting at potential changes to enhance White House control over monetary policy. Trump has consistently urged for interest rates to be reduced to 1% or even lower. Last month, the Fed reduced rates by 25 basis points to 3.5%. However, it is anticipated that rates will remain steady at least until March, with a return to ultra-low rates appearing unlikely in the near future.
Even as the Trump team intensifies its criticisms of Powell, prediction markets indicate that an early departure for the Chairman is unlikely, with his term scheduled to end in May this year. Nonetheless, ongoing assaults on central banks, particularly amid sustained inflation, have the potential to undermine investor confidence and destabilize the national currency. The recent crash of Turkey’s lira, instigated by President Recep Tayyip Erdogan’s meddling with the independence of the central bank, stands as a significant warning sign. However, the dollar’s position as the global reserve currency renders a significant collapse for the U.S. improbable.