Bitcoin Gains 2.9% Amid Trump's Fed Criticism, Gold Surges 3.9%

Bitcoin's price remained resilient, hovering near $87,300 on Monday, despite significant pressure on equity markets. This stability came as U.S. President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell, urging the central bank to lower interest rates. Trump, on his social media platform, referred to Powell as “Mr. Too Late,” emphasizing the need for immediate action to reduce borrowing costs. He also criticized Powell for misdiagnosing the pandemic-era increase in costs as transitory, labeling him “a major loser.”

Bitcoin showed strength against stock indices, with a 2.9% increase over the past 24 hours, while altcoins experienced mixed results. Solana fell 1.2% to $135, Dogecoin rose 1.6%, and XRP remained relatively unchanged. The U.S. Dollar Index (DXY), which measures the dollar’s value against a basket of other currencies, saw a slight recovery after hitting its lowest level since February 2022. The index stood at 98.3 after falling as low as 98.

Investors may be turning to gold and Bitcoin as safe-haven assets amid Trump’s threats to the Fed’s independence and the global financial system. According to a senior investment analyst, the weakening of trust in government institutions creates a demand for alternative stores of value like Bitcoin and gold. The price of gold surged 3.9% on Monday, setting a new high of $3,442 per ounce. Meanwhile, the S&P 500 plunged 2.8%, and the tech-heavy Nasdaq dropped 3%.

Bitcoin has shown modest gains since Trump’s “Liberation Day” this month, marked by sweeping tariffs on 180 nations. Despite some short-term fluctuations, Bitcoin has performed better than in the past, signaling a divergence from other risk assets. Trump’s rhetoric grew more critical of Powell after the official spoke before the Economic Club of Chicago last week, maintaining a cautious outlook about rate cuts and the economy. Trump later remarked that the Fed chair’s termination “cannot come fast enough,” hinting at a potential showdown without historical precedent.