Bitcoin Rises as Trump–Fed Tensions Spark Safe-Haven Demand

Bitcoin (BTC) climbed around 1% on Monday afternoon during Hong Kong trading hours, outperforming U.S. equities and the dollar as political tensions between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell unsettled global markets. According to CoinDesk data, Bitcoin briefly touched the $92,000 level, remaining within last week’s trading range of $89,000 to $95,000, while traditional risk assets moved lower.

At the same time, U.S. stock futures weakened, with Nasdaq futures down 0.8% and S&P 500 futures slipping 0.5%. The U.S. dollar index also declined, falling to 99.00 from Friday’s high of 99.26. The divergence between Bitcoin and equities is notable, as BTC often trades in close correlation with technology stocks. This decoupling has fueled speculation that investors are increasingly viewing Bitcoin as a safe-haven asset amid rising political and monetary uncertainty.

Market volatility intensified following reports that tensions between the White House and the Federal Reserve escalated over the weekend. Powell stated that the Trump administration had threatened him with a criminal indictment linked to the renovation of the Federal Reserve’s headquarters. Powell characterized the alleged threat as politically motivated and aimed at pressuring the central bank to cut interest rates more aggressively.

President Trump has been a vocal critic of the Federal Reserve, frequently calling for sharp interest rate reductions to stimulate economic growth. Since his 2025 inauguration, Trump has repeatedly urged Powell to lower rates to 1% or below, despite the Fed’s recent 25 basis point cut that brought rates to 3.5%. Policymakers are widely expected to hold rates steady until at least March, with a return to ultra-low rates seen as unlikely.

While prediction markets do not anticipate Powell’s early departure before his term ends in May, ongoing attacks on central bank independence can undermine investor confidence. Historical examples, such as Turkey’s currency crisis following political interference in monetary policy, highlight the risks. However, the U.S. dollar’s role as the world’s reserve currency reduces the likelihood of a similar collapse. Meanwhile, Bitcoin and gold, which recently surged to a record $4,600 per ounce, appear to be benefiting from renewed safe-haven demand.