As the conflict between U.S. President Trump and Federal Reserve Chair Jerome Powell continues to escalate, the crypto market experienced a noticeable rebound over the weekend. On Sunday evening, Bitcoin and mainstream crypto assets collectively rose, with the privacy coin sector performing particularly well, and market sentiment clearly shifting towards defensive and hedging strategies.
Data shows that by Sunday evening Eastern Time, Bitcoin rebounded above $92,000, with Ethereum also strengthening, and major blockchain assets generally recording gains to varying degrees. In comparison, privacy coins became the core focus of capital chasing, with Monero and Zcash experiencing significant surges in a short period, reflecting a re-pricing of market uncertainty regarding the financial system.
The trigger for the market volatility came from Powell’s rare public mention that the Federal Reserve is facing political pressure. He revealed that the U.S. Department of Justice is evaluating issues related to his 2025 congressional testimony and emphasized that the Fed maintains independence in interest rate decisions, rather than catering to administrative demands. Powell’s term will end in May 2026, while Trump has repeatedly publicly pressured for faster and larger rate cuts, with disagreements on monetary policy paths continuing to widen.
Several macro research analysts pointed out that Bitcoin’s rise was almost synchronized with Powell’s statements, and gold prices also rose significantly during the same period, indicating that funds are seeking alternative stores of value outside the traditional financial system. Against the backdrop of questions about the Fed’s independence, the neutral status of the U.S. dollar system has become a focal point of market discussion, and Bitcoin and gold are being re-evaluated as important assets for hedging political and systemic risks.
Structurally, the effective defense of technical support levels combined with strategic buying has provided short-term upward momentum for Bitcoin and Ethereum. Meanwhile, traders are closely watching potential regulatory developments, including rules that could improve market transparency and liquidity in digital asset markets, which are seen as medium-term positive factors.
Although some analysts warn that the U.S. market may experience sharp volatility after the opening of the new week due to political uncertainties, others believe that the current macro environment remains friendly to crypto assets. Lower-than-expected employment data, rising gold prices, and previous deleveraging adjustments have provided buffers for risk assets.
Additionally, the latest adjustments in institutional interest rate expectations are also noteworthy. Major investment banks have pushed back the first rate cut by the Fed to mid-2026, implying that the financial environment may remain accommodative for a longer period. As liquidity is gradually released, crypto assets often benefit first, and the market generally believes that this could lay the foundation for a new round of medium- to long-term trends.
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