The cryptocurrency market is showing unexpected resilience amid a significant downturn in traditional markets, with Bitcoin standing firm at $87,000 despite the U.S. dollar crashing to three-year lows. This unusual divergence might signal a pivotal moment in Bitcoin’s evolution as a haven asset, particularly as reports circulate about President Donald Trump’s intentions to remove Federal Reserve Chairman Jerome Powell from office.
Turkey’s painful experience of fiddling with central bank’s independence, which triggered the lira crash and capital flight into $BTC and stablecoins, serves as a cautionary tale for Trump who is looking to fire Fed’s Powell. By @godbole17https://t.co/0ZMcaJ5VrS
— CoinDesk (@CoinDesk) April 22, 2025
Bitcoin’s Resilience Amid Market Turmoil
As of press time, Bitcoin has gained approximately 2% in the past 24 hours, trading around $87,000. This performance stands in stark contrast to Wall Street’s broader struggles and the U.S. dollar’s continued decline. The DXY index has already plummeted over 10% to 98 in just three months, according to data from TradingView.
Market analysts suggest this could mark the beginning of a significant shift in investor sentiment, with cryptocurrency potentially emerging as a hedge against political interference in monetary policy.
The Trump-Powell Saga
The tension between President Trump and Fed Chairman Powell has been building for years. Even during his first term, Trump criticized Powell for being too cautious with interest rate cuts when rates were substantially lower than they are today.
Recent weeks have seen this criticism intensify dramatically. On Monday, Trump labeled Powell a “major loser” and warned of economic slowdown unless interest rates are cut immediately. This public dispute comes as Powell has maintained a patient approach to monetary policy, particularly in light of survey-based measures of inflation expectations that have risen following recent trade tensions.
Sources close to the administration report that Trump is actively exploring legal avenues to remove Powell from his position, a move that has already sent shockwaves through financial markets.
Turkey’s Experience: A Cautionary Tale
The situation draws striking parallels to Turkey’s experience under President Recep Tayyip Erdogan’s leadership. Beginning in 2019, Erdogan began directly interfering with the Turkish central bank’s operations, starting with the dismissal of Central Bank of Turkey governor Murat Cetinkaya in July of that year.
The intervention came after Turkey’s inflation rate had reached double digits in 2017, prompting the central bank to increase the one-week repo rate from 17.5% to 24% in September 2018. Between 2019 and 2021, Erdogan issued multiple decrees dismissing and appointing several central bank officials.
“We certainly don’t believe in high interest rates. We will pull down inflation and exchange rates with low-rate policy… High rates make the rich richer, the poor poorer. We won’t let that happen,” Erdogan stated in 2021.
The consequences have been severe. The Turkish lira has collapsed sevenfold from 5.3 per dollar to 38 per dollar since Erdogan’s interference began. As of 2025, Turkey continues to battle an inflation rate of nearly 40%, according to TradingEconomics.
The Crypto Refuge
Turkey’s economic troubles triggered a notable capital flight into Bitcoin and stablecoins as citizens sought protection from the lira’s rapid devaluation. This pattern has been evident since at least 2020-2021 and continues today.
Similar behavior could emerge in the U.S. if Trump follows through with his plans to undermine Fed independence. While the global reserve status of the U.S. dollar makes a lira-like collapse unlikely, significant devaluation remains a real possibility.
Global Implications
The potential impact of compromised Fed independence extends well beyond U.S. borders. Unlike Turkey, the United States serves as the foundation of the global financial system, with the U.S. Treasury market functioning as the bedrock of international finance.
Currently, countries with current account surpluses typically export capital to the U.S. in the form of Treasury holdings. If Fed independence is threatened, these nations may reconsider their investment strategies, potentially triggering significant volatility across global markets.
Financial experts warn that such a scenario could accelerate the adoption of decentralized alternatives like Bitcoin as both institutional and retail investors seek assets beyond the reach of political interference.
Also Read: “His Termination Cannot Come Fast Enough”: Trump Escalates Feud With Fed Chair Powell
Market Outlook
As the situation continues to develop, observers note that Bitcoin’s current price action may reflect early positioning by forward-thinking investors. The cryptocurrency’s limited supply and resistance to governmental control make it an attractive alternative in periods of monetary uncertainty.
Whether Bitcoin can maintain its resilience in the face of broader market volatility remains to be seen. However, the Turkish experience suggests that political interference in central banking can drive significant capital flows toward decentralized alternatives, potentially strengthening Bitcoin’s case as a modern safe-haven asset.
As one cryptocurrency analyst noted, “What we’re seeing could be the early stages of a fundamental shift in how investors view Bitcoin’s role in a diversified portfolio, especially when traditional monetary authorities face political pressure.”
For now, all eyes remain on Washington as markets await further developments in the increasingly tense relationship between the White House and the Federal Reserve.
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