Bitcoin, privacy coins rally as Trump-Powell conflict escalates

Bitcoin, Ethereum, and major cryptocurrencies rallied late Sunday, with privacy tokens like Monero and Zcash showing the largest gains, following a disclosure by Federal Reserve Chair Jerome Powell. Powell revealed that the U.S. Department of Justice threatened criminal indictment over his testimony, linking the Fed's independence to setting interest rates contrary to the President's preferences, particularly those of Donald Trump who advocates for faster rate cuts. Analysts suggest this conflict triggered a safe-haven rotation, with investors viewing Bitcoin and gold as hedges against perceived threats to the U.S. dollar-led financial system's neutrality. While technical buying also played a role, the broader macro backdrop, including softer non-farm payrolls and anticipated future Fed rate cuts, remains constructive for crypto assets, despite potential volatility around the U.S. market open.

(Source：The Block)