The political tension between US President Donald Trump and FED President Jerome Powell increased uncertainty in both traditional and crypto money markets. In this process, which was shaped by economic explanations, investors entered into an uneasy waiting. In particular, the intertwined of global economic concerns with the US domestic policy makes it difficult to determine direction in the markets. This complex picture deepens with the Central Bank policies and macroeconomic data.
Oral conflict between the presidents climbs
Trump’s direct criticism of Powell by targeting the strict monetary policies of the FED and argued that the tariffs implemented harm the economy, creating anxiety for market players. The president’s statements coincide with comments that price increases can cause economic stagnation when combined with the Fed’s actions. In this environment, investors move to the defense position against both economic slowing signals and the risk of political intervention.
Powell gave a message of preserving his independence by emphasizing that he would remain loyal to his term of office. Emphasizing determination in monetary policy, Powell said that tightening will continue to ensure price stability. However, rumors that Powell could be dismissed in the markets began to circulate. The fact that even this possibility is being discussed weakens the expectation of stability in the markets.
On the other hand, former Fed official Kevin Warsh and Treasury Minister Scott Bessent warnings such as warnings, the Central Bank should be free from political influences. Bessent said that interventions against the FED could shake the global investor confidence.
Worries are growing as economic data weaken
The decline in the Philadelphia Fed production index and the interest rate cutting decision of the European Central Bank indicate that economic growth is under pressure. According to experts, such data raises the possibility of stagflation. Both the high inflation is high and the slowdown in production activities creates uncertainty in investment decisions.
In this environment, market players closely follow both national and global developments. The high levels of the VIX index indicates that the fluctuation in the short term will continue. The rise of this index directly affects investors’ perception of risk and triggers a safe port search. In particular, gold, bonds and some fixed -oriented assets are observed to be ordered.
The crypto money market is also directly affected by these developments. Bitcoin moves in the range of $ 83,000 to 86,000, while Ethereum and other crypto currencies have increases in percentage. However, investors are trying to take precautions against downward movements as well as the rise potential. For this reason, portfolio diversity and short -term protection strategies come to the fore.
Search for complex balance in the crypto currency market
In this period when uncertainty deepened, the crypto currency market became a ground where investors evaluate both opportunities and risk elements together. Bitcoin’s watching on a particular band shows that there is no clear direction in the market yet. Especially the cautious behavior of large investors is reflected in the fluctuations in volumes.
Increases in major crypto currencies such as Ethereum are a short -term positive atmosphere, but there are different opinions about the sustainability of this. Investors have started to take more attention to macroeconomic developments rather than technical analysis. FED decisions, political discourses and global growth expectations play a decisive role on crypto currency prices.
In addition, it is emphasized that spot purchase and sale should be careful due to the height of the volatility. In particular, the upward movement of uncertainty indices such as VIX triggers the “protection reflexes ın of investors. For this reason, not only the search for earnings, but also the moves for capital protection are frequently observed.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
