Bitcoin prices have taken a significant hit, dipping below $100,000 for the first time in months, as US President Donald Trump's ongoing trade war and his renewed efforts to remove Federal Reserve Chairman Jerome Powell stir market uncertainty.
According to Forbes, this sharp decline follows a rollercoaster ride for cryptocurrency prices, which saw Bitcoin peak near $110,000 earlier this year before the impact of Trump's trade policies began to weigh heavily on global markets.
As of this week, Bitcoin's price has fallen significantly, closely mirroring stock market declines and fueling fears that the financial system may be heading toward a crisis.
According to experts, the situation could even lead to a "US dollar confidence crisis," which may send shockwaves through financial markets globally.
Trump's recent push to remove Powell from his post has added fuel to the fire. National Economic Council Director Kevin Hassett confirmed that Trump is exploring whether he can legally fire the Federal Reserve chair.
The move would be a dramatic escalation in Trump's ongoing battle with Powell over monetary policy. Trump has repeatedly criticized Powell for keeping interest rates high, arguing that this contributes to economic stagnation, particularly amid the ongoing trade war with China.
NEW: Trump’s targeting Powell, markets are cracking, and #Bitcoin is breaking free—emerging as the ultimate macro hedge. 🚀👇 pic.twitter.com/1y7IZbalMs
— Simply Bitcoin (@SimplyBitcoinTV) April 18, 2025
Bitcoin Struggles as Trump Targets Powell's Leadership Amid Trade Tensions
On social media, Trump stated that Powell's removal "cannot come fast enough," reinforcing his frustration with the Fed's reluctance to adjust interest rates despite mounting trade tensions.
While Powell has expressed concerns over inflation driven by tariffs, his cautious approach has done little to calm the volatility in markets.
Bilal Hafeez, CEO of investment research firm Macro Hive, called the potential removal of Powell an "apocalyptic scenario" for the markets, suggesting that the impact could be far-reaching and unpredictable.
This rising uncertainty has caused investors to retreat from riskier assets, including Bitcoin. The cryptocurrency, often seen as a hedge against market instability, has diverged from its historical relationship with gold.
While gold has surged to all-time highs, Bitcoin's price has struggled, reflecting investor nerves. However, some experts believe that, in the long run, Bitcoin may eventually begin to trade as "digital gold," benefitting from the current financial upheaval.
Despite the current downturn, Bitcoin's recovery from its April lows is showing promising signs. Bitcoin surged past $87,600 earlier this week, recovering from a recent slump and reaching its highest level since late March, Cryptonews said.
Himanshu Maradiya, founder of CIFDAQ Group, noted that Bitcoin's rebound has been stronger than expected, with the cryptocurrency reclaiming key levels and showing bullish momentum.
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