Bitcoin surged 6% to trade above $93,000 on Wednesday after US President Donald Trump stepped back from threats to remove Federal Reserve Chair Jerome Powell and signalled a possible easing of tariffs on Chinese imports.
Speaking from the Oval Office on Tuesday,.
He also suggested that the steep tariffs his administration imposed on China could be reduced, saying they "will come down substantially," although he added they "won't be zero."Bitcoin Breakout Follows Trump's Retreat from Fed Showdown
The remarks marked a sharp shift in tone from earlier this week, when Trump labelled Powell a "major loser" and hinted at firing him. The president has repeatedly criticized the Fed for not cutting interest rates fast enough, despite nominating Powell to lead the central bank in 2017.
. on Fed Chair Jerome Powell: "I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates ... but, no, I have no intention to fire him." - Rapid Response 47 (@RapidResponse47)
Markets responded swiftly. Bitcoin rose to $93,055, extending its gains to over 11% for the week. US stock futures also jumped, with the Dow, S&P 500 and Nasdaq futures climbing in after-hours trading.
Cryptocurrencies like Bitcoin tend to rally during times of perceived policy uncertainty or weakening confidence in traditional financial systems. Trump's recent attacks on the Fed, paired with signs of political interference, have likely fuelled demand for decentralised assets that operate outside of central bank control. Trump Retreats on Powell Threat After Market Jitters
