Even though former US President Donald Trump threatened to fire Federal Reserve Chairman Jerome Powell the day before Easter, the digital asset price remained basically stable on Good Friday.
Bitcoin Demonstrates Resilience as Federal Reserve Independence Debate Intensifies
Donald Trump fiercely criticized Federal Reserve Chairman Jerome Powell on Thursday for not implementing interest rate cuts and threatened to fire him, raising questions about central bank independence. Trump's remarks shook traditional markets, but Bitcoin prices were largely unaffected - despite the US stock market being closed for Good Friday.
Market Data Overview
Bitcoin traded smoothly over the past 24 hours, slightly rising 0.60% to $84,533.15 at the time of writing. Its trading range remained within a narrow channel between $83,749.75 and $85,449.07, continuing a seven-day upward trend with a cumulative increase of 3.21%.
(BTC Price Chart/Trading View)
Trading activity significantly decreased, with 24-hour trading volume reduced by 29.26% to $19.4 billion, mainly due to traditional markets being closed for Good Friday. Bitcoin's market cap still rose 0.56% to $1.67 trillion, though its cryptocurrency market dominance slightly dropped 0.24% to 63.86%.
(BTC Dominance Chart/Trading View)
Coinglass data shows BTC futures open interest slightly increased by 1.34% to $54.88 billion, indicating traders remain cautiously involved. The 24-hour liquidation amount was only $163,990 (long $159,260/short $4,730), reflecting light trading during the holiday.
How Would Bitcoin React if Trump Controlled the Federal Reserve?
Bitcoin was originally meant to be a product of resistance against central banks, so it sometimes seems ironically poignant when Federal Reserve announcements have a significant impact on its price.
Now that Trump has repeatedly threatened to fire Powell - which could completely shatter the illusion of Federal Reserve independence in some people's eyes - if policy-making is influenced by political will, digital asset prices could experience further volatility.
(Trump threatened to fire Powell on Thursday morning via Truth Social/Donald Trump Truth Social screenshot)
"Trump's remarks confirm a known fact: monetary policy does not operate in a vacuum," said Doug Colkitt, founder of Ambient Finance, to Bitcoin.com. "Political narratives are seeping into interest rate decisions, which only increases uncertainty."
The issue of Federal Reserve independence is undoubtedly crucial for traditional assets directly linked to interest rates. The question is: Will Bitcoin's strong correlation with such assets eventually decouple, thereby escaping central bank and political influence as Satoshi Nakamoto originally envisioned?
Colkitt noted: "For crypto builders, this highlights the long-term need for financial infrastructure and prudent regulation - which should not sway with election cycles or central bank political winds."
