Bitcoin Rises After Jerome Powell Addresses Fed 'Intimidation'

Bitcoin Rises After Jerome Powell Addresses Fed 'Intimidation' – Here’s Why

The independence of the U.S. Federal Reserve has made headlines once again this week, following a public statement from Chair Jerome Powell, who criticized political pressures from President Donald Trump. Analysts suggest that a recent probe by the Department of Justice (DoJ) into Powell could ultimately be beneficial for safe-haven assets like gold and emerging alternatives such as Bitcoin (BTC).

Key Takeaways

Jerome Powell criticized political pressure from President Trump, highlighting the need for Fed independence.
Bitcoin's price surged after Powell's statement, suggesting increased demand for safe-haven assets amid political tensions.
Historical patterns show BTC tends to rise during conflicts between the Fed and political figures.
Analysts emphasize caution for investors in light of potential market reactions to the ongoing Fed-White House conflict.

Bitcoin Fed

Jerome Powell's Response to Pressure

Powell described the investigation into the renovations of Federal Reserve buildings as merely a “pretext.” He believes that Trump's animosity towards him stems from Powell's reluctance to make aggressive interest rate cuts as the President desired. He stated, "The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President." Powell vowed to oppose what he sees as “intimidation” of the central bank, emphasizing that it is crucial for the Fed to operate based on economic evidence rather than succumbing to political pressure.

Impact of Fed's Crisis on Bitcoin

Following Powell’s remarks, Bitcoin experienced an immediate increase, jumping from $90.5k to over $91k, while the U.S. dollar index [DXY] saw a slight decline. Analysts at Presto Research suggest that any perception of compromised independence from the Federal Reserve would likely boost demand for alternative safe-haven assets.

Bitcoin Fed
Source: Presto Research/X

In April 2025, Trump had threatened to dismiss Powell, which led to a BTC rally while U.S. equities fell. Such scenarios have created a pattern where BTC is viewed as a “safe haven” asset in times of conflict, similar to gold. As the ongoing clash between the Fed and Trump progresses into a formal investigation of Powell in 2026, analysts predict that historical market trends are likely to repeat themselves.

Eliézer Ndinga, Global Head of Research at 21Shares, commented in an email to AMBCrypto, “Recent remarks from Jerome Powell on the importance of maintaining central bank independence highlight how essential trust and transparency are to modern monetary policy.” He believes that Bitcoin is establishing itself as a valuable store of wealth that complements, rather than competes with, traditional financial systems.

In a separate statement, Farzam Ehsani, CEO of the cryptocurrency exchange VALR, expressed concern over the escalating conflict between the White House and the Fed, calling it a “concerning precedent.” He advised caution for investors, noting that “the crypto market could react sharply to the outcome of the conflict.” Ehsani also suggested that if the White House prevails, it could lead to a significant BTC rally. Conversely, if the Fed maintains its stance, the market may revert to its fundamental conditions. However, should the White House successfully implement a rate cut and introduce stimulus measures, both Bitcoin and gold could see substantial gains.

Final Thoughts

As the situation continues to unfold, the dynamics between political influence and financial independence will be crucial in shaping the future of cryptocurrencies like Bitcoin. Investors should remain vigilant and informed as these developments progress.