Bitcoin slipped in European trading, pulling back toward the $90,000 mark and wiping out earlier gains from the Asian session when it climbed above $92,000.
The cryptocurrency has since fallen into negative territory for the day, as ongoing tensions between Federal Reserve Chair Jerome Powell and President Donald Trump continued to pressure market sentiment.
As of 10:50 GMT, Bitcoin was trading 0.57 percent lower at $90,351. Ether, the world’s second-largest cryptocurrency, also declined 0.50 percent to $3,102.32.
Investors seek safe-haven assets as Trump pressures Fed Chair
Investors sought safe-haven assets like gold and silver after the Trump administration intensified pressure on the Federal Reserve, threatening to indict Chair Jerome Powell over remarks he made to Congress regarding a building renovation project, an accusation Powell described as a “pretext” aimed at increasing political influence over interest rates, which Trump has repeatedly called to be cut sharply.
Traditional safe-haven assets continue to lead markets, with both gold and silver reaching fresh all-time highs. Gold is hovering near $4,600 an ounce, while silver has surged more than 5 percent to above $84 an ounce. By market capitalization, gold and silver now rank as the world’s largest and second-largest assets, at roughly $32 trillion and $4.7 trillion, respectively.
Bitcoin, meanwhile, appears torn between contrasting narratives. Although it is frequently positioned as a neutral, reserve-style hard asset, recent price action suggests it is behaving more like a leveraged technology stock.
Heightened geopolitical strains impact Bitcoin
Bitcoin also continues to face downward pressure amid heightened geopolitical strains between the United States and several countries, including Venezuela and Greenland, alongside anticipation of a U.S. Supreme Court ruling on tariffs due Wednesday and President Donald Trump’s proposal to cap credit card interest rates at 10 percent.
Institutional sentiment has also weakened, as reflected in sustained outflows from Bitcoin-focused exchange-traded funds. Data from Sosovalue shows that spot Bitcoin ETFs saw net outflows of $681.01 million last week, marking four straight days of selling.
