Bitcoin gains after Jerome Powell warns of Fed ‘intimidation’ – Here’s why

The U.S. Federal Reserve’s independence has hit the headlines once more this week after Chair Jerome Powell publicly criticized political strain from President Donald Trump. 

Based on analysts, the current Division of Justice (DoJ) probe into Powell might in the end profit secure havens equivalent to gold and rising options like Bitcoin [BTC]. 

Fed’s Powell pushback

For Powell, the investigation into the Federal Reserve buildings’ renovations was a “pretext.” Based on him, Trump was after him for failing to chop rates of interest aggressively to go well with the President’s calls for. 

“The specter of legal prices is a consequence of the Federal Reserve setting rates of interest based mostly on our greatest evaluation of what’s going to serve the general public, quite than following the preferences of the President.”

He vowed to combat again in opposition to what he perceived as “intimidation” in opposition to the central financial institution. He added, 

“That is about whether or not the Fed will be capable to proceed to set rates of interest based mostly on proof and financial situations—or whether or not as an alternative financial coverage will likely be directed by political strain or intimidation.”

 Fed’s disaster and impression on BTC

Following Powell’s assertion, BTC surged instantly from $90.5k to over $91k, whereas the U.S. greenback index (DXY) slipped barely.

Based on analysts at Presto Analysis, a “compromised Fed independence” would gas demand for various secure havens. 

Supply: Presto Analysis/X

In April 2025, Trump threatened to dismiss Powell, and BTC rallied whereas U.S. equities bought off. Related stories later in 2025 triggered the identical market reactions, which strengthened BTC as a “secure haven” asset, very similar to gold. 

With the Fed-Trump tussle culminating in a proper investigation of Powell in 2026, analysts consider that previous tendencies will doubtless repeat themselves.

In an e mail assertion to AMBCrypto, Eliézer Ndinga, World Head of Analysis at 21Shares, stated, 

“Latest remarks from Jerome Powell on the significance of sustaining central financial institution independence spotlight how important belief and transparency are to trendy financial coverage.” 

He added, 

“In that context, Bitcoin continues to evolve as an rising retailer of worth with attributes that complement quite than compete with conventional monetary techniques.”

On his half, Farzam Ehsani, CEO of cryptocurrency trade VALR, advised AMBCrypto that the escalating White Home-Fed battle was a “regarding precedent.”

He known as for warning within the coming weeks, noting that, 

“Buyers ought to train excessive warning within the coming weeks. The crypto market might react sharply to the end result of the battle. “

But when the White Home wins, it might gas a large BTC rally, Ehsani added.

“If the Fed holds agency, the market might return to its basic situation. If the White Home is ready to push by means of a charge lower and launches stimulus measures, Bitcoin and gold might surge larger.”

Last Ideas

• Whatever the end result of the Fed-Trump battle, analysts consider it could profit BTC as a ‘secure haven.’
• In 2025, an identical escalation fueled a gold rally and various shops of worth equivalent to BTC and silver.