President Donald Trump criticized Federal Reserve Chair Jerome Powell on Thursday for his decision not to lower interest rates, suggesting the possibility of termination, which has sparked concerns regarding the autonomy of the central bank. Trump’s remarks have caused a stir in traditional markets; however, bitcoin’s value has shown relative stability. It is noteworthy that U.S. equity markets are closed today in observance of Good Friday. Bitcoin was envisioned as a counterpoint to central banking, making it somewhat ironic that statements from the Federal Reserve can significantly influence the cryptocurrency’s valuation.
The price of the digital asset showed minimal movement on Good Friday, despite President Donald Trump’s recent threat to dismiss Federal Reserve Chairman Jerome Powell the previous day. Bitcoin exhibited stable trading patterns in the last 24 hours, achieving a slight increase of 0.60%, bringing its value to $84,533.15 as of the latest update. The cryptocurrency maintained a tight trading range, fluctuating between $83,749.75 and $85,449.07, as it extended its 7-day upward trajectory with a notable increase of 3.21%.
Trading activity experienced a significant decline, as 24-hour volume plummeted by 29.26%, settling at $17.94 billion. The decline can be attributed primarily to the shutdown of conventional markets in recognition of Good Friday. Bitcoin’s market capitalization experienced a modest increase of 0.56%, reaching $1.67 trillion. Meanwhile, BTC’s dominance within the cryptocurrency market saw a slight decline, falling to 63.86%, a decrease of 0.24% during the same timeframe.
Recent data from Coinglass indicates a modest increase in Bitcoin futures open interest, which has risen by 1.34% to reach $54.88 billion. This development suggests that traders are maintaining a cautious level of engagement in the market. In the latest trading session, liquidations remained low, amounting to a mere $163,990 within a 24-hour period. This figure comprised $159,260 from long positions and $4,730 from shorts, indicating a subdued trading environment during the holiday season.
With Trump consistently suggesting the possibility of firing Powell, analysts are raising concerns that this could undermine the perceived independence of the Federal Reserve. Such a shift may lead to increased volatility in the digital asset’s price, particularly if it becomes influenced by political dynamics. The independence of the Federal Reserve remains a pivotal concern for traditional assets, as their valuations are closely linked to fluctuations in interest rates. The pressing inquiry is whether bitcoin’s robust correlation with various assets will ultimately decouple, allowing it to operate independently of central banking and political influences, in alignment with Satoshi’s original vision.
Doug Colkitt, founder of Ambient Finance, stated, “Trump’s comments reinforce what we already know: monetary policy isn’t operating in a vacuum.” “Political narratives are increasingly influencing rate decisions, which amplifies uncertainty in the market.” Colkitt emphasized the critical importance for cryptocurrency developers to establish enduring financial infrastructure and implement regulations that remain stable, rather than being influenced by the fluctuations of election cycles or central bank policies.