Bitcoin Holds Steady Near $85K Amid Political Tensions as Trump Criticizes Fed Chair Powell

Bitcoin’s price remained stable around the $85,000 mark as former President Donald Trump escalated his criticism of Federal Reserve Chairman Jerome Powell, raising concerns about potential political interference in monetary policy. Market analysts suggest the cryptocurrency’s resilience reflects investor caution amid the unfolding macroeconomic drama, with traders closely monitoring how central bank independence could impact risk assets. The standstill follows Bitcoin’s recent rally, as institutional interest continues to counterbalance regulatory uncertainties and geopolitical factors influencing digital asset valuations.

How bitcoin traders position amid heightened fear on Wall Street ?

Bitcoin has stabilized between $83k and $86k with traders chasing bullish bets while still seeking downside protection.

On Deribit, traders are actively chasing calls at the 90k to $100k strikes expiring in May and June, the exchange said in a market update Thursday. The demand for calls indicates expectations for a continued price rally.

Some of these bullish bets have been funded by premiums collected by selling put options.

At the same time, there has been renewed interest in buying put options at $80k expiring this month, representing preparations for potential price declines. Buying a put option is akin to purchasing insurance against price slides.

The diverse two-way Flow comes as the VIX, Wall Street’s fear gauge measuring the 30-day implied volatility, still remains well above its 50-day average, despite the pullback from recent highs above 50.

The VIX is warning that the macro situation is still unraveling rather than resolving, the exchange said on X.