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- Crypto markets remain steady as traditional stocks tumble, with Bitcoin up 0.92% despite major U.S. indices falling sharply.
- Trump escalates tensions by attacking Fed Chair Powell and demanding rate cuts, intensifying political and economic uncertainty.
- Bitcoin’s resilience highlights a shift in market sentiment, signaling its emerging role as a stable alternative in turbulent times.
While U.S. stock markets tumbled on April 21 following renewed political friction between Donald Trump and Federal Reserve Chair Jerome Powell, digital asset markets remained surprisingly steady. As traditional finance reels, Bitcoin and other top digital assets are displaying strong resilience, offering a potential haven amid growing macroeconomic uncertainty.
The S&P 500 dropped 2.4%, the tech-heavy Nasdaq fell 2.5%, and the Dow Jones Industrial Average plunged nearly 1,000 points its worst single-day performance in weeks. The pressure came after Trump took to his Truth Social platform to criticize Powell and call for immediate rate cuts.
“Preemptive cuts in interest rates are being called for by many,” Trump posted, claiming inflation is no longer a concern due to declining energy and food prices. He labeled Powell “Mr. Too Late” and “a major loser,” while calling for the central bank chief’s removal, saying his “termination cannot come fast enough.”
Fed Holds Rates Crypto Climbs as Dollar Falls
The Federal Reserve has so far held firm, keeping interest rates at 4.5%. Fed Chair Powell has recently warned that Trump’s trade tariffs could lead to stagflation, a damaging economic condition marked by high inflation and slowing growth. The Fed is widely expected to maintain a cautious, data-driven approach at its upcoming May 7 policy meeting.
According to the CME FedWatch tool, interest rate markets currently reflect just a 13% probability of a rate cut. As investor anxiety grows, the U.S. dollar continues to weaken. The U.S. Dollar Index (DXY), which tracks the dollar against major global currencies, has dropped more than 10% this year, falling to a three-year low of 98.037 on April 22, according to TradingView.
Despite the political volatility and traditional market losses, the digital asset market has held firm. At the time of writing, Bitcoin is trading at $ 88,380 with a 24-hour trading volume of $ 46.59B and a market cap of $ 1.75T. The BTC price increased 0.92% in the last 24 hours.
“Amid one of the most turbulent periods for global markets in years, Bitcoin is showing impressive resilience,” noted analysts at Bitfinex. Market sentiment appears to be shifting as investors look for alternatives to fiat-backed assets.
Macro analyst and Real Vision CEO Raoul Pal added that the weakening U.S. dollar is fueling broader demand for decentralized assets. “Everyone needs and wants a weaker dollar to service their dollar debts,” he said. “This is the purest form of global liquidity and is the largest driver of global M2 [money supply] currently.”
Crypto Emerges as Safe Haven in Unstable Markets
As U.S. financial markets face a convergence of political risk, inflation debate, and currency devaluation, Bitcoin and the broader digital asset space are proving to be more than just speculative plays. With institutional adoption continuing to grow and dollar confidence slipping, Bitcoin is increasingly being viewed as a macro hedge.
While the path ahead remains uncertain, the decoupling between digital assets and traditional financial markets is becoming more visible. In an era where volatility is the new normal, the ability of Bitcoin to weather geopolitical storms may signal a maturing market and a shift in global investor strategy.
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