Bitcoin Gains as Trump-Powell Feud Rattles Stocks and Dollar

Bitcoin (BTC $91,233.29) rose 1% Monday afternoon in Hong Kong, defying falling 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 slipped to 99.00 from Friday’s 99.26 peak.

The cryptocurrency briefly touched $92,000 but stayed within last week’s $89,000–$95,000 range, according to CoinDesk. Unlike its usual close correlation with equities, Bitcoin’s resilience points to growing safe-haven demand. Investors increasingly view BTC as a hedge against political and monetary uncertainty, a role mirrored by gold, which surged to a record $4,600 per ounce.

The latest tensions follow Powell’s revelation that the Trump administration threatened him with a criminal indictment over renovations at the Federal Reserve headquarters. Powell dismissed the threat as politically motivated, designed to pressure the Fed into cutting interest rates.

Trump has long criticized the Fed for its cautious approach to monetary policy, repeatedly calling for aggressive rate cuts since his 2025 inauguration and labeling Powell a “numbskull.” He has pushed for interest rates to fall to 1% or below. Last month, the Fed trimmed rates by 25 basis points to 3.5%, but expectations are for rates to remain steady at least until March, with ultra-low rates unlikely in the near term.

Despite the White House’s attacks, prediction markets see little chance of Powell leaving early; his term expires in May. Still, repeated political pressure on central banks during periods of persistent inflation can weaken investor confidence. The collapse of Turkey’s lira, driven by President Erdogan’s interference with central bank independence, is a cautionary example. The U.S. dollar’s status as the global reserve currency, however, makes a severe collapse unlikely.