On Wednesday (April 23), the US dollar index rebounded to 99.47, gold plummeted to $3,339, and Bitcoin decoupled from gold prices, skyrocketing past $93,500. US President Trump unexpectedly shifted stance, stating he would not fire Federal Reserve Chairman Powell.
US CNBC reported that Trump stated on Tuesday that he has "no intention" of firing Powell before the end of his term next year. When asked to clarify that he was not seeking to remove Powell, Trump responded in the Oval Office: "Absolutely not, never."
This statement represents a significant shift in Trump's attitude, as he has recently intensified his attacks on Powell and refused to rule out the possibility of taking unprecedented measures to fire Powell.
US stock index futures surged across the board following Trump's latest remarks.
Trump has been pressuring the Federal Reserve chairman to cut interest rates to stimulate economic growth. Last week, when discussing Powell, Trump said, "If I wanted him out, he would be out quickly."
White House economic advisor Kevin Hassett stated on Friday that Trump and his aides are actively exploring the possibility of firing Powell.
Powell is the Federal Reserve Chairman appointed by Trump during his first term, serving until May 2026. He has made it clear that, under the law, the president cannot remove him.
On Monday, Trump launched his most intense criticism of Powell to date, calling him a "big loser" and urging him to lower interest rates immediately.
But when asked on Tuesday about the possibility of firing Powell, Trump said, "The media is making a mess of things."
"No, I have no intention of firing him," Trump told reporters after Paul Atkins was sworn in as the Chairman of the US Securities and Exchange Commission.
"I would like to see him be more aggressive on interest rate cuts," he added. "Now is the best time to cut rates."
Before Trump's remarks, the major US stock indices closed significantly higher, rebounding from a steep sell-off on Monday, which was at least partly related to concerns raised by Trump's attacks on Powell.
Some critics and analysts warn that Trump's removal of the traditionally independent Federal Reserve chairman could trigger market panic.
Bitcoin Technical Analysis: Expected to rise another 70-80%
CoinTelegraph noted that Bitcoin prices have been on a continuous downward trend since January, but on April 22 it broke through $91,000, marking its first breakthrough of higher highs this year and potentially opening a new long-term upward trend.
After Bitcoin broke through the previous lower highs and the resistance level of $88,500, a higher high pattern emerged, but the key factor that can sustain price increases is the buying volume from various groups in the Bitcoin market.
On April 21, the total net inflow for Bitcoin spot ETFs in the US reached $381 million, marking the highest level since January 30.
The increase in inflows for Bitcoin spot ETFs, combined with the rise in Bitcoin prices, suggests that institutional demand for Bitcoin may be recovering, and changes in ETF trends may offset the sell-off pressure that has limited Bitcoin prices for months.
However, the demand from retail investors (buying volume between $0 and $10,000) remains below 0%, indicating that low-volume buyers have yet to return. Over the past year, these investors have underperformed compared to BTC price breakouts, but once their trading volume turns positive, they will enhance price momentum.
CryptoQuant community manager Maartunn emphasized that the current upward momentum is driven by leverage rather than spot trading volume. Glassnode data also indicated that Bitcoin futures open interest (OI) increased by $2.4 billion in less than 36 hours.
To maintain Bitcoin prices above $90,000, the current divergence between futures traders and retail traders needs to decrease.
In the long term, DYOR cryptocurrency founder Hitesh Malviya stated that if Bitcoin maintains an MVRV ratio of 2 in the next six weeks, it could see an increase of 70% to 80%.
The Market Value to Real Value (MVRV) ratio is a key on-chain indicator that compares Bitcoin's market capitalization to its actual value (i.e., the value of Bitcoin calculated at its latest trading price). Historically, an MVRV above 3.7 typically indicates overvaluation and market peaks, while an MVRV close to 2 suggests strong price increases.
Bitcoin's MVRV score has remained above 2 from October 2024 to February 2025, consistent with its historical peak. Recently, this indicator fell below 2 during a market correction, but is currently attempting to reclaim this key level.
