Bitcoin rises 1% as Trump-Powell dispute fuels declines in Nasdaq futures and the U.S. dollar.

Bitcoin Climbs 1% as Trump-Powell Feud Weighs on Stocks and Dollar

Bitcoin (BTC $91,233.29) rose 1% Monday in Hong Kong trading, moving opposite U.S. stock futures as tensions between President Donald Trump and Federal Reserve Chair Jerome Powell unsettled markets. Nasdaq futures fell 0.8%, S&P 500 futures dropped 0.5%, and the dollar index declined to 99.00 from Friday’s 99.26.

The cryptocurrency briefly touched $92,000 but remained within last week’s $89,000–$95,000 range, according to CoinDesk data. Unlike its usual correlation with equities, Bitcoin’s gains suggest growing demand as a safe-haven asset. Advocates see it as a hedge against political and monetary instability, a role echoed by gold, which hit a record $4,600 per ounce.

Tensions escalated after Powell revealed that the Trump administration threatened him with a criminal indictment over Fed headquarters renovations. Powell called the threat politically motivated, aimed at pressuring the central bank to cut rates.

Trump has frequently criticized the Fed’s cautious approach to interest rates, calling Powell a “numbskull” and pushing for sharper cuts since his 2025 inauguration. He has advocated for rates as low as 1%. While the Fed recently trimmed rates by 25 basis points to 3.5%, it is expected to hold steady at least until March, with ultra-low rates unlikely in the near term.

Prediction markets do not foresee Powell leaving his post early; his term expires in May. Still, repeated political pressure on central banks during inflationary periods can erode investor confidence. Turkey’s lira collapse, caused by President Erdogan’s interference with central bank independence, serves as a cautionary example. The U.S. dollar’s global reserve status, however, makes a dramatic collapse unlikely.