#PowellRemarks Bitcoin Holds Steady Amid Trump-Powell Clash Over Interest Rates
The cryptocurrency market remained stable on Friday as tensions flared between former President Donald Trump and Federal Reserve Chair Jerome Powell regarding interest rate policy.
Trump publicly criticized Powell on Truth Social, urging the Fed to cut interest rates immediately and accusing Powell of “playing politics.” He claimed Powell is “always late” and suggested he needs to “change his image.”
The comments came just minutes before Powell delivered a speech at the Society for Advancing Business Editing and Writing (SABEW) conference in Virginia. In his remarks, Powell maintained a cautious stance, stating the Fed would monitor economic data before making any policy changes, emphasizing a “wait and see” approach.
Despite Powell’s comments triggering a sell-off in financial markets—leading to a $1.5 trillion loss—Bitcoin’s price remained resilient. The S&P 500 and Nasdaq 100 dropped 5.9% and 6%, respectively, while gold and silver declined 2.6% and nearly 8%.
Bitcoin briefly surged past $84,000, showing strength even as traditional markets faltered. Other cryptocurrencies also performed well, with $XRP and Solana posting gains of 3% and 5%.
This market divergence has reignited the narrative of Bitcoin as a "safe haven" asset, similar to its behavior during the early months of the COVID-19 pandemic in 2020. Back then, Bitcoin started the year around $7,161, plunged below $4,900 during the March crash, and later recovered as investors looked for alternatives to traditional assets.
If Bitcoin’s detachment from broader markets continues, it could further strengthen its role as a hedge amid global economic uncertainty.