Bitcoin Rallies Amid Trump’s Criticism of Federal Reserve and US Dollar Decline

Bitcoin’s price experienced a significant upward movement as former President Donald Trump publicly criticized the Federal Reserve’s monetary policies, coinciding with a sharp drop in the US dollar’s value. The cryptocurrency’s surge reflects growing investor sentiment favoring alternative assets during periods of fiat currency instability and political uncertainty surrounding central bank decisions.

Trump’s Fed Fight Rocks USD and Lifts BTC

President Trump’s war of words with Powell has rattled global markets. On social media, Trump called Powell “a major loser” and demanded immediate rate cuts. He blamed the Fed for slowing down the U.S. economy. Trump also pointed to Europe, where central banks have already lowered rates multiple times. This kind of rhetoric makes investors nervous. The U.S. Dollar Index (DXY) hit a three-year low, dropping below 99. Meanwhile, capital flowed into Bitcoin and gold. Trump’s unpredictable trade policies and threats to the Fed’s independence are raising fears. As a result, Bitcoin is starting to replace the dollar in some portfolios.

Bitcoin Breaks Away From Stocks

Another major shift is happening: Bitcoin is moving independently from stocks. In the past, BTC often followed equity trends. But this week, while the S&P 500 and Nasdaq dropped, Bitcoin surged. Analysts see this as a key moment. The Kobeissi Letter noted that tech stocks like Nvidia fell hard, but Bitcoin stayed strong. This shows BTC is acting more like gold—a safe haven. The market is clearly reacting to global trade fears. Rising tensions with China and Japan are making investors rethink their strategy. As stocks slide, BTC looks more attractive.

Institutional Confidence in Bitcoin Is Rising

Despite recent ETF outflows, signs show that big investors are coming back to Bitcoin. QCP Capital reported net inflows into spot Bitcoin ETFs last week. This marks a turnaround from the heavy selling seen earlier in April. Traders are positioning more evenly now, with less bearish sentiment. Bitcoin’s dominance also jumped, now at 64.3% of the crypto market. Trading volume exploded to $34 billion, showing strong demand. With interest rates in question and stocks under pressure, BTC is regaining its role as a hedge. If current trends continue, more institutions could boost their BTC exposure soon.

China, Trump, and Bitcoin: The Global Market Trio

Trade tensions with China are adding fuel to the fire. Warnings from Beijing and Tokyo about strained ties with the U.S. are making markets jittery. Investors are losing trust in traditional financial systems. Bitcoin, designed to operate outside of those systems, benefits from this chaos. Donald Trump’s policies are shaking up currency markets. The falling USD is pushing investors toward decentralized assets. China’s potential response to U.S. tariffs could add more volatility. In this new environment, Bitcoin is no longer just a speculative bet. It’s becoming a key player in the global financial game.