Bitcoin Holds Steady Near $85,000 as Trump Escalates War on Fed Chair Powell

Bitcoin is trading around $84,900 on April 17, 2025, showing remarkable resilience amid a brewing constitutional clash between the White House and the Federal Reserve. While the broader crypto market capitalization hovers near $2.7 trillion, Bitcoin finds itself caught between institutional outflows and a macroeconomic storm that is sending mixed signals to investors worldwide.

TL;DR

• Bitcoin trades at $84,895, holding the $84,000–$85,000 range as markets digest Fed Chair Powell’s hawkish comments
• President Trump publicly calls for Powell’s termination, escalating a rare public feud over interest rate policy
• Spot Bitcoin ETFs bleed $171 million in a single day, with BlackRock’s IBIT and Ark’s ARKB leading the sell-off
• Gold surges 11% in a month, outperforming Bitcoin and drawing institutional capital away from risk assets
• BTC’s correlation with gold flips to -0.80, signaling a decoupling from the traditional safe-haven narrative

The Trump-Powell Showdown That Shakes Markets

The biggest story of the day is not a chart pattern or an on-chain metric — it is a political confrontation that could reshape the relationship between the U.S. government and its central bank. Federal Reserve Chair Jerome Powell, speaking at the Economic Club of Chicago on April 16, delivered a sober assessment of the economic landscape. He warned that Trump’s tariff policies risk fueling inflation while simultaneously damaging growth, placing the Fed in an increasingly difficult position between its dual mandate of price stability and maximum employment.

Powell reiterated that the central bank can afford to be patient, waiting for the effects of tariffs to become clearer before adjusting rates. He also made a notable acknowledgment of the crypto sector’s rise, suggesting that some banking regulations could be “partially relaxed” to accommodate the industry — a rare direct nod to digital assets from the Fed Chair.

President Trump was having none of it. In a fiery post on Truth Social, he declared that “Powell’s termination cannot come fast enough!” and called the Fed’s current approach “a complete mess.” Trump pointed to the European Central Bank’s expected rate cuts as evidence that the U.S. is falling behind, and claimed inflation was already under control. Treasury Secretary Scott Bessent is reportedly preparing to interview candidates to potentially succeed Powell later this year.

For Bitcoin, the implications are significant. A Fed Chair who is more inclined to cut rates would likely weaken the dollar and boost risk assets, including crypto. But the uncertainty surrounding Powell’s future is keeping markets in a holding pattern, with neither bulls nor bears willing to commit heavily in either direction.

Spot Bitcoin ETFs See $171 Million in Outflows

The institutional picture painted a less optimistic story on Wednesday. Spot Bitcoin ETFs recorded approximately $171 million in net outflows, snapping a brief two-day buying streak that had seen modest inflows of $1.5 million on Monday and $76.4 million on Tuesday. The sell-off was concentrated in two of the largest funds: BlackRock’s IBIT shed over $113 million, while Ark Invest’s ARKB also contributed meaningfully to the red figure.

This pattern of ETF sell-offs during price rallies has historically preceded downswings, and sophisticated institutional investors appear to be using the $85,000 level as an opportunity to take profits. The outflows suggest that despite Bitcoin’s relative stability compared to equities — BTC is up 2% over the past month while the Nasdaq has shed 6% — institutional conviction remains fragile.

The order book tells a similar story. Strong bids are stacked between $81,000 and $83,000, providing a cushion of support. However, a decisive break below this zone could open the door to $80,000 and potentially $76,000 on extension. Bitcoin is range-bound and waiting for a catalyst.

Gold Steals the Safe-Haven Spotlight

Perhaps the most telling signal for Bitcoin investors is gold’s remarkable performance. The yellow metal has surged 11% over the past month and is now up 27% year-to-date, firmly establishing itself as the preferred safe-haven asset in the current macroeconomic environment. BTC’s correlation with gold has flipped to -0.80, a stark inversion that highlights how institutional capital is treating the two assets very differently.

Meanwhile, Bitcoin’s strong positive correlation of +0.80 with AUD/JPY — a classic risk-on currency pair — reinforces its growing role as a high-beta risk asset in macro trading strategies. This is not the “digital gold” narrative that many Bitcoin proponents hoped for, at least not in the short term. Gold is winning the institutional flows that Bitcoin bulls expected would come during periods of economic uncertainty.

Global Central Banks Add to the Complexity

The macro backdrop is further complicated by divergent central bank policies. The European Central Bank delivered a widely expected rate cut on Thursday but flagged a worsening economic outlook tied to global trade tensions. In a more dramatic move, Turkey’s central bank shocked markets by hiking its key rate by 350 basis points to a staggering 46%, underscoring the extreme monetary policy divergence across the globe.

For Bitcoin, which trades 24/7 and reacts to every twist in the macro narrative, this patchwork of central bank actions creates a complex environment. The asset is simultaneously seen as a hedge against monetary debasement and a speculative risk instrument, depending on who you ask and what time horizon they are considering.

Fed Signals Openness to Crypto Innovation

In a somewhat ironic twist given the political fireworks, Powell’s Chicago speech also included encouraging words for the crypto industry. The Fed Chair reiterated the need for a stablecoin regulatory framework, noting renewed Congressional interest in establishing consumer protection legislation. More significantly, he indicated that the Federal Reserve is open to easing certain banking regulations to foster responsible innovation within the crypto sector.

Powell emphasized that the Fed does not intend to restrict banks from engaging with legally operating crypto clients, signaling a more accommodating stance towards the integration of digital assets into the traditional financial system. For an industry that has spent years fighting regulatory uncertainty in the United States, these remarks represent a meaningful shift in tone from the most powerful central banker in the world.

Why This Matters

April 17, 2025 marks a day where the intersection of politics, monetary policy, and cryptocurrency is impossible to ignore. Bitcoin is holding a critical level near $85,000 despite significant institutional headwinds, a public assault on the Federal Reserve’s independence, and capital flowing into gold at crypto’s expense. The coming weeks will reveal whether BTC can find a fresh catalyst — whether from a political tailwind, renewed institutional buying, or a shift in the macro environment — to break out of its current range. For now, patience is the name of the game, and the order book suggests that $81,000–$83,000 is the line in the sand.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always do your own research before making investment decisions.