Cryptocurrency Decoupling? BTC Rises as Equity Markets Swoon

The price of Bitcoin hovered near$ 87,300 on Monday, despite U. S. President Donald Trump applying new force on Federal Reserve Chair Jerome Powell to lower interest rates, which sent capital industry tailspinning.

Referring to Powell as “Mr. To Late” on Truth Social, Trump said that now is the day for the U. S. central banks to lower borrowing costs, pushing up on economics ’ fears that doing so would contribute to inflation as consumers and businesses navigate higher type costs from taxes.

“Powell has always been ‘To[o ] Late, ’” Trump added, referencing a pandemic-era increase in costs that Fed policymakers misdiagnosed as transitory, while calling Powell “a major loser. ”

Cryptocurrency was just off 2. 9 % over the past 24 hours, according to crypto data provider CoinGecko. Cryptocurrencies were mingled, with Solana falling 1. 2 % to$ 135 while Dogecoin rose 1. 6 %. XRP was almost smooth.  

The U. S. Dollar Index ( DXY ), which measures shifts in the dollar’s value relative to a basket of other currencies, pared losses on Monday after hitting its lowest level since February 2022. The estimate just stood at 98. 3 after falling as low as 98, according to TradingView.

While the ruble has previously served as a safe-haven property, investors may become turning to silver and Bitcoin as Trump’s threats test the Fed’s independence and the global economic system’s status quo, Bitwise Senior Investment Analyst Juan Leon told .

“Further weakening of trust in government organizations [also] creates a charge for alternative stores of value like Bitcoin and gold, ” he added.

The price of silver surged 3. 9 % on Monday, setting a new high of$ 3,442 per ounce, according to Yahoo Finance. The S& P 500 plunged 2. 8 %, while the tech-heavy Nasdaq dropped 3 %.

Bitcoin has notched modest benefits since Trump’s “Liberation Day ” this month, marked by broad levies on 180 countries. But it ’s continued to show power against another chance property, according to Steven Lubka, Head of Personal Users at Swan Bitcoin.

“There were some short term candles into the 70s, but apart from that, [the downside ] was fairly limited, ” he said. “Bitcoin has performed generally better than it has in the past, now signaling some sort of difference. ”

Trump’s language grew more critical of Powell after the official knew before the Economic Club of Chicago next year, maintaining a optimistic outlook on price cuts and the economy. Trump after remarked that the Fed chair’s cancellation “cannot come quickly enough, ” hinting at what would become a battle without historical precedent.