Crypto Markets Stable Despite Trump's Powell Criticism, Gold Outperforms S&P 500

On a shortened trading schedule due to the Easter holiday, the crypto markets remained relatively stable. The CoinDesk 20 Index, which tracks the largest and most active cryptocurrencies, saw a minimal gain of less than 0.1% in the past 24 hours, with Bitcoin (BTC) up by just 0.1%. This muted response came despite President Donald Trump's calls for the removal of Federal Reserve Chair Jerome Powell, who has been criticized for his reluctance to cut interest rates. Trump's outburst on his social media platform Truth Social, where he stated that Powell was “too late” in lowering interest rates and that his “termination cannot come fast enough,” added to the economic uncertainty. This uncertainty has led to a shift in investor sentiment, with gold emerging as a preferred hedge against currency debasement and uncertainty, outperforming the S&P 500 over the past 20 years, including dividends.

For crypto investors, the signals are mixed. While macroeconomic uncertainty persists, the regulatory outlook under the Trump administration has been improving, and institutions have shown more comfort with the space. Ira Auerbach, head of tandem at Offchain Labs and former head of digital assets at Nasdaq, noted that markets are extremely reactionary to White House decision-making and are poised to remain that way for the foreseeable future. Auerbach also suggested that Trump's push for rate cuts amid tariff-driven inflation risks could reignite Bitcoin's original narrative as a 'hedge against eroding purchasing power.' However, for the time being, the hedge against currency debasement and uncertainty appears to be gold.

Charles d’Haussy, CEO of the dYdX Foundation, advised market participants to 'let the dust settle' as tariff implementations and bilateral negotiations unfold. He noted that market participants' consensus seems to signal central banks' action past the summer. Despite the uncertainty, the crypto market remains resilient, with institutions showing more comfort with the space and regulatory outlook improving under the Trump administration. The recent bull run in gold has meant that, over the last 20 years, it’s outperforming the S&P 500, including dividends. For crypto investors, signals are mixed. While on the macro front uncertainty reigns, under the Trump administration regulatory outlook has been improving and institutions have shown more comfort with the space.