Bitcoin Price Moves Above $85K as Donald Trump Fires at Fed Chief Jerome Powell, What’s happening ?

Bitcoin price forecast remains clouded by political tension, with BTC holding above $85,000 as traders weigh Fed independence and rate direction.

Bitcoin price hovers above $85K as Trump escalates pressure on Fed Chief Powell

Bitcoin price tethered near the $85,000 zone on Thursday despite bearish sentiment across global financial markets linked to the US-China trade war. While equity markets faced sharp drawdowns, the flagship cryptocurrency remained resilient following heightened political friction between the White House and the Federal Reserve.

President Donald Trump amplified criticism of Federal Reserve Chair Jerome Powell, suggesting potential removal after Powell reaffirmed the Fed’s legal independence during a speech at the Economic Club of Chicago. Powell emphasized that the central bank’s autonomy is protected by statute, stating, “We’re not removable except for cause.”

The remarks followed a series of posts on Trump’s Truth Social account, where he labeled Powell’s policy direction “a complete mess,” accusing the Fed of missing timely opportunities to reduce interest rates despite falling inflation and commodity prices.

Trump pointed to the European Central Bank’s expected seventh rate cut as justification for immediate Fed action.

He claimed inflation was under control and called for lower rates to support economic growth.

Treasury Secretary Scott Bessent is reportedly preparing to begin interviewing candidates to potentially replace Powell later this year, adding further uncertainty to the Fed’s policy outlook.

How Could Bitcoin Price React to Trump’s Powell Criticism

Interest rates play a pivotal role in shaping capital flows toward risk assets like Bitcoin. Lower interest rates typically drive investors to seek higher returns in alternative markets, including crypto, making any shift in Fed policy direction a crucial signal for Bitcoin’s trajectory.

If Trump successfully pressures the Fed into cutting rates sooner than anticipated, it could reinvigorate bullish momentum in Bitcoin and the broader crypto market.

Lower borrowing costs and increased liquidity may encourage institutional and retail investors to allocate more capital into digital assets, potentially driving Bitcoin toward fresh highs above the $90,000 level.

Such a move would also align with broader global easing trends, particularly if the ECB proceeds with further cuts.

On the other hand, if the ECB slashes rates while Powell opts for another pause, the divergence could create a temporary imbalance in capital flows.

This might strengthen the US dollar in the short term, applying downward pressure on Bitcoin and other dollar-denominated assets.

In this scenario, Bitcoin could face renewed volatility and range-bound trading, particularly if macroeconomic uncertainty persists around interest rates and inflation targets.

Bitcoin Price Forecast: BTC Faces Rejection Risks at $88,500 Resistance

Bitcoin price forecast shows a tentative bullish stance losing momentum as BTC consolidates below the $88,454 resistance, a level defined by the upper Donchian Channel band.

While BTC price remains above the midline near $81,456, this recent rejection signals waning bullish strength. The narrowing channel range between $88,454 and $74,458 highlights tightening market conditions, a precursor often to breakout or breakdown moves.

The MACD histogram also shows fading bullish bars, while the MACD line, although above the signal line, flattens around 551—indicating momentum is stalling rather than strengthening. Should BTC lose $81,456, a move to test the lower channel support at $74,458 is likely, with further downside to $71,000 possible if selling intensifies.

However, a decisive daily close above $88,454 with strong MACD expansion could revive the bullish trend, targeting $92,000 short term. Until then, the bias leans bearish as momentum stalls and resistance caps further gains.