A sharp plunge in the Philadelphia Fed manufacturing index coupled with rising prices added to U.S. stagflation fears amid the tariff war.

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Bitcoin stabilized around $85,000, while the CoinDesk 20 Index was led higher by gains in BCH, NEAR and AAVE.

President Trump reportedly has been privately discussing firing Powell, raising concerns about market stability and central bank independence.

Bitcoin options traders are chasing bullish, $90k to $100k bets, while seeking protection from a potential decline in the near term, Deribit data shows.

Bitcoin (BTC) was treading water just below $85,000 late Thursday as tensions between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell added another layer of uncertainty for investors.

Markets dipped on Wednesday after hawkish comments from Powell, who criticized Trump’s tariffs policy, saying that it would likely result in a slowing economy and rising prices — what economists call “stagflation." In his remarks, Powell made clear his larger focus for now would be on prices, suggesting tighter Fed policy than otherwise thought.

Trump — who nominated the former investment banker and lawyer as Fed chair during his first term (Powell was given a second four-year term by President Biden) — has expressed his displeasure with Powell since retaking the White House. Powell, though, who is set to remain atop the central bank until May 2026, has repeatedly stated his determination to finish his term and suggested the president has no standing to fire him.

On Thursday, the WSJ reported that Trump has been privately discussing firing Powell for months, according to people familiar with the matter. Former Fed Governor Kevin Warsh is reportedly waiting in the wings as Powell's replacement, but Warsh has lobbied the president not to move against the Fed chair, according to the story.

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