According to CryptoSlate, Bitcoin traders are preparing for a potential "credibility shock" from the Federal Reserve. The shift follows escalating tensions between President Trump and Federal Reserve Chair Jerome Powell, including grand jury subpoenas and threats of criminal indictment related to a renovation of the Fed’s Washington buildings. The market responded with gold surging, the dollar slipping, and US stock futures falling. Bitcoin initially rose with the "credibility hedge" complex but then retraced. Powell framed the confrontation as a test of whether US monetary policy will be directed by evidence or by intimidation. Bitcoin is both a risk asset and, at times, a credibility hedge.

According to CryptoSlate, Bitcoin traders are preparing for a potential "credibility shock" from the Federal Reserve. The shift follows escalating tensions between President Trump and Federal Reserve Chair Jerome Powell, including grand jury subpoenas and threats of criminal indictment related to a renovation of the Fed’s Washington buildings. The market responded with gold surging, the dollar slipping, and US stock futures falling. Bitcoin initially rose with the "credibility hedge" complex but then retraced. Powell framed the confrontation as a test of whether US monetary policy will be directed by evidence or by intimidation. Bitcoin is both a risk asset and, at times, a credibility hedge.