Bitcoin prices have stabilized near $85,000 as tensions between US President Donald Trump and Federal Reserve Chair Jerome Powell continue to add uncertainty to the market. The ongoing tensions have significant implications for both Bitcoin and traditional markets.
Bitcoin Stabilizes Near $85K Amid Tensions Between Trump and Powell
Market Uncertainty Amid US Stagflation Fears
Bitcoin prices have stabilized near $85,000, as tensions between U.S. President ‘Donald Trump‘ and Federal Reserve Chair ‘Jerome Powell’ continue to add uncertainty to the market. The Philadelphia Fed manufacturing index, which fell to its lowest level in two years, has raised concerns about stagflation and the impact of the Trump administration’s large-scale tariff policy on the economy.
Bitcoin is a decentralized digital currency that allows for peer-to-peer transactions without the need for intermediaries.
It was created in 2009 by an individual or group using the pseudonym Satoshi Nakamoto.
Bitcoin uses cryptography to secure and verify transactions, and its supply is limited to 21 million coins.
The network is maintained by miners who compete to solve complex mathematical equations, validating transactions and adding them to the blockchain ledger.
Market Reaction to Powell‘s Comments
Powell‘s hawkish comments on Wednesday, criticizing ‘tariffs policy’ as likely to result in a slowing economy and rising prices, have had a significant impact on markets. The S&P 500 and tech-heavy Nasdaq stock indexes traded mostly flat during the day, while Bitcoin options traders are chasing bullish bets for a continued price rally.
Bullish Bets and Downside Protection
On Deribit, traders are actively chasing calls at the $90k to $100k strikes expiring in May and June. Some of these bullish bets have been funded by premiums collected by selling put options. At the same time, there has been renewed interest in buying put options at $80k expiring this month, representing preparations for potential price declines.
Market Sentiment and Volatility
The VIX, Wall Street’s fear gauge measuring the 30-day implied volatility, remains well above its 50-day average, despite a pullback from recent highs above 50. This suggests that market sentiment is still wary of the macro situation unraveling rather than resolving.
Implications for Bitcoin and Markets
The ongoing tensions between Trump and Powell have significant implications for both Bitcoin and traditional markets. As the situation continues to unfold, investors will be watching closely for any further developments that could impact market stability and central bank independence.
