Recent threats from U.S. President Donald Trump to replace Federal Reserve Chair Jerome Powell sparked reactions in the financial markets. Despite this, the cryptocurrency market shows resilience.
Trump's Verbal Attacks on Powell
President Trump renewed his attacks on Jerome Powell, describing him as 'Mr. Too Late' and 'a major loser' for failing to cut interest rates. Trump, who appointed Powell in 2017, continues to call for lower rates.
Impact on Stock Markets and the Dollar
Following Trump's threats, stock markets reacted negatively: the S&P 500 dropped 2.4%, the NASDAQ fell 2.5%, and the Dow Jones lost nearly 1,000 points. The dollar also weakened, slipping over 10% this year to a three-year low.
Bitcoin's Resilience in a Turbulent Environment
Despite the upheaval, cryptocurrency markets, including Bitcoin, showed resilience, with the total crypto market capitalization holding at around $2.83 trillion. Bitcoin started the week at $88,197, trading at around $88,446.
Tensions between Trump and the Federal Reserve continue, with high interest rates and existing tariffs likely affecting Bitcoin's development over the coming weeks.
