Bitcoin and crypto prices have been rocked by U.S. president Donald Trump's escalating trade war

This week, Trump posted to his Truth Social account that “Powell's termination cannot come fast enough” after Powell reiterated his intention to keep interest rates on hold due to uncertainty over Trump's tariff trade war.

U.S. president Donald Trump’s escalating trade war (with a top Federal Reserve official confirming a bail out is ready for the $30 trillion bond market) has rocked bitcoin and crypto prices.

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The bitcoin price has dropped sharply from its peak of almost $110,000 per bitcoin, plummeting to lows of under $75,000 as traders are warned of a U.S. dollar "confidence crisis" that could be worse than 1971.

Now, with Wall Street banks suddenly staring down the barrel of an “existential” bitcoin and crypto threat, Trump’s war with Fed chair Jerome Powell could be about to trigger a bitcoin price and wider market "black swan."

Federal Reserve chair Jerome Powell has warned interest rates must remain high to prevent the return ... Moreof inflation—something that could weigh on the bitcoin price and stock market.

“Trump somehow firing Powell would represent another Black Swan. If it happens, react fast and short swiftly,” closely-followed trader and economist Alex Krüger said in a post to X, referring to so-called black swan events that are typically hard to predict and have extreme consequences.

“This is not something I’d trade in anticipation of. When it comes to Black Swans, reacting fast works well.”

This week, Trump posted to his Truth Social account that “Powell’s termination cannot come fast enough” after Powell reiterated his intention to keep interest rates on hold due to uncertainty over Trump’s tariff trade war.

Last month, influential Democratic Party senator Elizabeth Warren said Trump could try to fire Powell, ominously warning, “nobody is safe.”

“If I want him out, he’ll be out of there real fast, believe me,” Trump later said in the Oval Office while taking questions from reporters during a visit with Italy’s prime minister Giorgia Meloni.

Krüger predicted that if Trump were to fire Powell, stock markets would “implode," with the bitcoin price going “down hard then up as it progresses from a pure risk asset to a risk-safe haven hybrid.”

The bitcoin price has dropped since U.S. president Donald Trump took office but remains well above ... Morewhere it was this time last year.

Bitcoin has so far failed to trade in line with the traditional safe haven asset, gold. The gold price has shot higher as Trump’s global trade tariffs come into force, with the bitcoin price following stock markets lower.

This week, Powell reiterated that the Fed was waiting for greater clarity before making any moves, predicting Trump’s tariffs would likely worsen inflation.

“Powell stated that tariffs were not a catalyst for a rate cut,” senior market analyst at Trade Nation David Morrison said in emailed comments.

“His remarks cast a fresh layer of doubt over the central bank’s path forward and renewed concerns over stagflation risk.”