The future of Bitcoin (BTCUSD)

21 Nisan 2025

The Future of Bitcoin (BTCUSD): How Could Trump’s Threats to Powell Spark a Revolution in the Crypto Markets?

Written by: Rania Gule, Senior Market Analyst at XS.com – MENA

In unprecedented political and economic tension, Bitcoin surged from its recent low of $74,200 to $84,400—marking one of its strongest rallies in 2025. At the same time, traditional financial markets wavered under the weight of former U.S. President Donald Trump’s threats, as he didn’t hesitate to attack Federal Reserve Chair Jerome Powell, hinting at firing him for “delaying” interest rate cuts. Ironically, in my view, such a threat could have crashed equity markets, yet it had the opposite effect on Bitcoin, which not only held steady but gained. Could this signal the beginning of a new chapter where cryptocurrency rewrites the rules of global economics? And are political threats turning into catalysts for crypto markets? That’s what I aim to analyse here.

From my perspective, Bitcoin’s surge amidst Trump’s political offensive on Powell was no coincidence—it’s a clear expression of changing investor behaviour toward crypto assets. Bitcoin has long been considered a hedge against inflation and banking systems, but now, with U.S. monetary policy spiralling into uncertainty, investors are taking a proactive step: turning to assets that are immune to political manipulation, with Bitcoin leading the way.

The mere mention of firing the Fed Chair is not a trivial matter. In markets, every word from someone like Trump translates into immediate investment decisions. Just hinting at Powell’s dismissal raised deep concerns about the independence of U.S. monetary policy. While some major investors sought refuge in gold and bonds, what’s striking is that a significant portion of capital flowed into Bitcoin. This indicates that investor trust in crypto has evolved beyond experimentation—it’s now a long-term strategic bet.

In my assessment, Bitcoin crossing the $84,000 threshold was not just a reaction to Trump’s pressure on Powell; it’s the culmination of months of rising uncertainty in traditional markets. High interest rates, industrial slowdown, trade tensions, and geopolitical conflicts are all pushing capital toward havens detached from government influence. Here, Bitcoin emerges not as a speculative asset, as it was previously labelled, but as a serious hedge in the eyes of major institutions.

However, this surge is not without risk. Despite its relative stability, Bitcoin remains vulnerable to sudden corrections, especially if the Fed’s upcoming statements contradict market expectations. If Powell maintains a hawkish tone on interest rates despite Trump’s pressure, we might see a temporary dip in Bitcoin’s price. Yet in my opinion, that dip would be nothing more than a brief pause on the road to further gains, as the broader trend shows growing institutional demand for cryptocurrencies, especially as political and monetary tensions rise.

History, in my view, is repeating itself—with new instruments. In the past, gold was the sole refuge from political and monetary volatility. Now, Bitcoin is taking on that role, but in a more advanced and agile form. While gold prices are still shaped by monetary policies and industrial demand, Bitcoin moves more freely, reacting directly to shifts in policy and rhetoric.

With U.S. inflation easing—something Trump himself acknowledged—the Fed’s delay in cutting rates sends mixed signals to markets: why maintain high interest rates if inflation is under control? This contradiction is prompting many traders to question the Fed’s logic, once again boosting the relative appeal of non-traditional assets like Bitcoin.

Add to that the fact that since Trump’s tariff announcement in February, Bitcoin has fallen roughly 18%. But this decline wasn’t due to a lack of faith in the project—it stemmed from temporary outflows caused by trade-related uncertainty. Now, those outflows are gradually reversing. U.S. spot Bitcoin ETFs have recorded $5.12 billion in outflows, which at this stage seem more like repositioning rather than market exit.

From my point of view, if Trump continues to exert political pressure on Powell—and if the likelihood of firing him increases—Bitcoin could enter a new bullish wave, possibly exceeding the $90,000 mark, especially if this scenario is paired with an actual rate cut by the Fed in the coming months. The key factor will be the Fed’s timing: any delay will be seen as another opportunity for Bitcoin to prove its independence and strength as an asset class.

In the medium term, I expect Bitcoin to continue trading between $80,000 and $88,000 over the coming weeks, assuming the Fed’s decisions remain ambiguous and political tension persists. Once Powell delivers a decisive announcement—either a rate cut or a firm rejection—we’ll likely see a breakout to $100,000, or a temporary correction to $76,000 before resuming the upward trajectory.

Ultimately, I believe Bitcoin today is no longer defined by price alone—it’s shaped by the market’s confidence in its ability to endure chaos. While politicians argue over tariffs and interest rates, the savvy investor escapes the noise and turns to an asset governed solely by supply and demand: Bitcoin.

 

Zaid Barem / ymm