Bitcoin (BTC) May Be Poised to Surge to New All-Time Highs (ATH) as Concerns Grow Over the Independence of the US Federal Reserve

Bitcoin (BTC) may be poised to surge to new all-time highs (ATH) as concerns grow over the independence of the US Federal Reserve.

The US President Donald Trump and his team are exploring whether they can legally remove Federal Reserve Chair Jerome Powell before his term expires in May 2026, reports Blockworks.

The development comes amid increasing concerns over the independence of the US central bank, especially with the macroeconomic outlook worsening due to fresh tariff-related concerns and the threat of an impending trade war.

Is Bitcoin Heading To New Record Highs?

Bitcoin (BTC) price crossed the $90,000 mark for the first time since March 10 as concerns over the independence of the US Federal Reserve (Fed) grew. Notably, US President Donald Trump and his team are reportedly exploring whether they can legally remove Fed Chair Jerome Powell before his term expires in May 2026.

According to a report by Blockworks, Trump and his legal advisors are examining the possibility of dismissing Powell early from his role. This interest in removing Powell stems from Trump’s pressure campaign to slash interest rates.

Earlier this month, Trump warned that the US economy could slow down unless the Fed cuts interest rates. However, Powell has remained focused on a data-driven approach in line with the Fed’s dual mandate—to control inflation and ensure maximum employment. But there’s no urgency yet to slash rates.

Trump’s administration is also planning to impose fresh tariffs on several countries in retaliation for their tariffs on US goods. The president recently announced plans to place tariffs of 50% on products from France, Spain, Portugal, Germany, and Britain—to be announced next week—in response to tariffs that these countries have on U.S. wine.

These tariffs could reignite inflation, pushing up the prices of goods and services in the short to medium term. But Trump claimed there is “virtually no inflation” in the US.

However, in a recent interview with Fox Business, Trump also threatened that the US economy could go into a “very big downturn” if the Fed doesn’t cut interest rates.

Trump had appointed Powell as Fed Chair during his first presidential term in 2016. A new report by Standard Chartered’s Head of Digital Assets Geoff Kendrick suggests that Trump’s rhetoric could affect the Fed’s autonomy. And this outcome may benefit Bitcoin (BTC).

In a note shared on Wednesday, Kendrick said that BTC is a hedge against risks to the existing financial system due to its decentralized ledger. The Standard Chartered executive further added:

The yield premium investors are demanding to buy long-dated Treasuries versus short-dated ones has risen sharply and this is benefitting bitcoin.

Recent data shows the 10-year Treasury yield up two basis points to 4.425%. A sudden spike in long-term Treasury yields is considered bearish as it reflects rising borrowing costs and tighter financial conditions—factors that can weigh on economic growth and dampen risk appetite.

It is worth noting that earlier this year, Standard Chartered had predicted that BTC may reach as high as $200,000 by the end of 2025. BTC’s current all-time high is $108,786, which was reached on January 20.

Technicals Point Toward Bitcoin Rally

While Bitcoin may benefit from uncertainty around the US Fed’s autonomy, technical indicators also point toward a potential rally for the flagship cryptocurrency. For instance, the TD Sequential recently flashed a buy signal on the BTC weekly chart.

Meanwhile, large-scale investors—commonly known as Bitcoin whales—don’t appear to be concerned by tariff-related panic. On-chain data shows continued BTC accumulation by these sophisticated players.

At the same time, Bitcoin’s network fundamentals are growing stronger. Its hashrate recently reached a new all-time high, underscoring the network’s resilience and security.

Adding to the optimism, crypto analyst Master of Crypto recently suggested that BTC may be mirroring gold’s historical “power curve”—with potential to reach as high as $450,000 by the end of 2025.

At press time, BTC trades at $90,957, up 3.3% in the last 24 hours.