Bitcoin Surges: Trump’s Fed Warning Sparks Market Buzz and Volatility

Trump's Fed Warning and Bitcoin Price Chaos

According to Forbes, former U.S. President Donald Trump has sparked significant concerns in the financial markets with his escalating trade war and criticism of Federal Reserve Chair Jerome Powell. Trump’s recent comments on potentially firing Powell have raised fears of a "black swan" event, which could lead to severe market disruptions. Bitcoin, which has already seen a sharp decline from its peak of nearly $110,000 to under $75,000, is at the center of this turmoil.

Economist Alex Krüger highlighted the potential consequences of such an event, stating that if Trump were to fire Powell, stock markets could "implode," and Bitcoin prices might initially drop before recovering as a hybrid risk-safe haven asset. Meanwhile, Powell has reiterated his stance on maintaining interest rates, citing uncertainty caused by Trump’s trade policies. This has further fueled concerns about inflation and stagflation risks.

“Trump somehow firing Powell would represent another black swan. If it happens, react fast and short swiftly,” said Alex Krüger.

As the situation unfolds, Bitcoin's role as a safe haven asset remains under scrutiny, with its price movements closely tied to broader market dynamics.

Key Takeaways:

Bitcoin price dropped from $110,000 to under $75,000 amid market uncertainty.
Trump’s potential firing of Powell could trigger a "black swan" event.
Concerns over inflation and stagflation risks persist.

Bitcoin Surges Past $85,000 Amid Market Optimism

99Bitcoins reports that Bitcoin has reclaimed the $85,000 mark, signaling a potential shift from bearish to bullish market sentiment. This marks the eighth time this week that Bitcoin has crossed this key level, driven by increased institutional interest and the approval of spot Bitcoin ETFs. These developments have bolstered confidence in Bitcoin as a long-term investment, with panic selling becoming less prevalent.

Analysts predict that if the current momentum continues, Bitcoin could reach $89,000 to $95,000 by early summer, with some forecasts suggesting a potential rise to $100,000 by winter. Stablecoins like USDC have also shown resilience, with a 47% growth in the industry, further strengthening the crypto market's foundation.

“Bitcoin's resilience during a tech and equity selloff is a reminder: it's not just a risk asset—it's evolving into a macro hedge,” noted Brotoshi Stakamoto on social media.

Additionally, the presale of BTCBULL, a token tied to Bitcoin's price performance, has raised $5.4 million, offering investors an opportunity to earn passive income through BTC airdrops and high annual percentage yields (APY).

Key Takeaways:

Bitcoin price surpasses $85,000, indicating bullish market sentiment.
Institutional interest and ETF approvals drive demand.
BTCBULL presale raises $5.4 million, offering 85% APY and BTC airdrops.

Bitcoin Miners' Hash Rate Hits All-Time High

Advisor Perspectives highlights a significant increase in Bitcoin miners' hash rate, which has reached an all-time high despite challenging market conditions. The hash rate, a measure of the computing power used for mining, often correlates with Bitcoin's price. However, the current divergence between the hash rate and Bitcoin's price suggests that miners are optimistic about future profitability.

Experts believe that miners are either racing to accumulate Bitcoin before margins deteriorate further or are confident in Bitcoin's long-term potential. This increase in hash rate comes at a time when profitability is low, indicating a willingness among miners to endure short-term losses for potential long-term gains.

“Despite terrible profitability, miners are not only staying online, they’re deploying more hash power,” reported Bitcoin Magazine.

As miners continue to invest in infrastructure, this could signal a potential price rally in the near future, aligning with broader market recovery trends.

Key Takeaways: