Bitcoin Surges as Monero Zooms to New Record Price Amid Escalating Trump-Powell Feud

Bitcoin (BTC) surged to $91,943 during weekend trading as tensions between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell intensified. The Federal Reserve received grand jury subpoenas from the Department of Justice (DOJ), which Powell described as part of an ongoing campaign to influence monetary policy decisions. The political uncertainty led to increased demand for decentralized assets like Bitcoin and other privacy coins according to market analysis.

Monero (XMR), a privacy-focused cryptocurrency, also saw significant gains amid the heightened political climate. Institutional investors are increasingly viewing privacy coins as tools to safeguard financial sovereignty against potential government overreach. Monero's price movement highlighted the growing demand for digital assets that offer enhanced transactional privacy.

Institutional flows accelerated as investors sought alternative financial systems outside traditional banking. Bitcoin's 24-hour volume reached $29.7 billion, maintaining its 58.54% market share. The broader cryptocurrency market cap climbed to $3.13 trillion, with Bitcoin's dominance reinforcing its role as a primary safe-haven asset.

Why Did This Happen?

Federal Reserve Chair Jerome Powell disclosed that the DOJ served the central bank with grand jury subpoenas linked to his June 2025 congressional testimony regarding Federal Reserve building renovations. He characterized the move as politically motivated, tied to the administration's demands for more aggressive interest rate cuts. The DOJ investigation marks a significant escalation in the long-running tensions between the Trump administration and the Fed.

The investigation and related political pressure intensified concerns over the independence of the Federal Reserve. Powell emphasized that the Fed must remain free from political influence in setting monetary policy. He warned that political pressure could undermine the central bank's ability to function independently and make evidence-based decisions.

How Did Markets React?

Bitcoin and other cryptocurrencies experienced a surge in institutional investment. Bitcoin climbed to $92,000, while Ether (ETH) gained 1.8% to $3,163. Solana also saw significant gains, with investors seeking alternatives amid traditional financial market uncertainty. The cryptocurrency market's total capitalization rose to $3.2 trillion as investors shifted funds to decentralized assets.

The U.S. dollar weakened, with the dollar index dropping to 99.00 from its peak of 99.26. Nasdaq futures fell 0.8%, while S&P 500 futures dropped 0.5%. The decline in traditional market indices contrasted with the surge in Bitcoin and other cryptocurrencies, signaling increased safe-haven demand.

Gold, a traditional safe-haven asset, also saw a price increase, reaching a record high of $4,600 per ounce. The market shift toward alternative assets reflected a broader trend of investors seeking diversification in the face of political and economic uncertainty.

What Are Analysts Watching Next?

Analysts are closely monitoring the ongoing developments in the Trump-Powell feud and their potential impact on financial markets. On-chain analyst Willy Woo noted that investor flows have bottomed around December and could see further gains in the coming months. However, concerns remain about longer-term liquidity and potential volatility.

Monero's recent performance highlighted the importance of privacy in financial transactions. With Zcash experiencing internal governance issues, Monero has repositioned itself as the default privacy coin. The market's reaction to Zcash's instability pushed capital toward more stable protocols like Monero.

The Federal Reserve's independence remains a critical factor in market stability. Any further escalation in the Trump administration's efforts to influence monetary policy could lead to increased volatility in both traditional and digital asset markets. Investors and analysts are watching for any new developments in the DOJ's investigation into Powell.

Bitcoin's price action and market dynamics indicate a shift toward more institutional adoption of cryptocurrencies. As political pressures on traditional financial systems intensify, the demand for decentralized assets is expected to grow. The current market environment suggests that cryptocurrencies are increasingly being viewed as essential tools for portfolio diversification and financial sovereignty.