Bitcoin and Gold Respond Amid Trump-Powell Tensions

Federal Reserve Chair Jerome Powell revealed that the U.S. Department of Justice threatened prosecution over his 2025 testimony on Fed actions, amidst pressures from President Trump for rate cuts.

The feud has influenced markets, notably boosting Bitcoin, Ethereum, and gold prices, reflecting concerns over financial stability and Fed independence amid political uncertainty.

Tensions between Donald Trump and Jerome Powell have heightened, affecting global financial markets. The conflict centers on the Federal Reserve's independence and rate decisions.

Jerome Powell, as Federal Reserve Chair, faces DOJ threats linked to his congressional testimony. These actions appear to escalate pressure on the central bank.

The financial markets responded quickly, with Bitcoin gaining up to 1.9% and gold increasing as investors seek safety. This underscores the tension's impact.

The political tension introduces uncertainty, affecting both traditional markets and cryptocurrency assets like Bitcoin. Peter Chang links these moves to concerns about Fed autonomy.