Bitcoin Remains Below $85,000 Amid Trump-Powell Tensions
Bitcoin (BTC) was trading below $85,000 amid rising uncertainties from tensions between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell. Key points include:
- Markets dipped after Powell's hawkish comments on Trump's tariffs, indicating potential stagflation.
- Trump is reportedly considering firing Powell, who has stated intentions to complete his term until May 2026.
- The odds of Trump removing Powell this year increased to 19% on the prediction market Polymarket.
- The European Central Bank cut interest rates for the seventh consecutive time, citing a deteriorating growth outlook.
- The Philadelphia Fed manufacturing index dropped to -26.4, its lowest in two years, while prices paid index hit a high since July 2022.
- Both S&P 500 and Nasdaq indexes remained mostly flat.
- In the crypto market, BTC and Ethereum’s (ETH) prices rose by 0.8% over the past 24 hours.
- Traders are positioning for bullish bets on Bitcoin, with calls at $90k to $100k strikes gaining interest.
- There is also renewed interest in buying put options at $80k as a hedge against price declines.
- The VIX remains above its 50-day average, indicating ongoing macroeconomic concerns.
