Bitcoin and crypto prices are trading sideways after the long-running row between U.S. president Donald Trump and Federal Reserve chair Jerome Powell took a surprise turn that could weigh on the U.S. dollar.
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The bitcoin price has dropped back after surging into 2026, while gold and silver prices have made fresh gains (potentially paving the way for a huge bitcoin price boom).
Now, as the crypto market is embracing a new mantra that could trigger the next bitcoin price bull run, predictions that an emerging Fed crisis will cause the U.S. dollar to “fall” are fueling bullish bitcoin price bets.
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Federal Reserve chair Jerome Powell is under pressure to lower interest rates, something that could boost the bitcoin price as gold and silver surge.
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“The dollar went into a holding pattern after reciprocal tariffs in April,” Robin Brooks, a senior fellow in the Global Economy and Development program at the Brookings Institution, posted to X.
“What looks calm on the surface is really a deeply unsettled equilibrium. The Fed is under assault this year as the battle to cut rates into the midterms heats up. The U.S. dollar will fall.”
Over the weekend, Fed chair Jerome Powell warned the Trump administration had taken “unprecedented action” with its criminal investigation into the Fed, calling it a pretext to rein in the central bank’s independence.
Through 2025, U.S. president Donald Trump pushed for the Fed to lower interest rates and threatened to fire Powell, raising fears that Fed independence could come to an end this year when he names Powell’s replacement, due to take over in May.
In a Substack post, Brooks warned major economies around the world are already suffering signs of “debt crisis” as they try to balance monetary policy credibility with inflation expectations.
“The bottom line is that debt crises in the G10 are very much possible. In fact, we’re already seeing them play out in real time,” Brooks wrote.
Last year, the U.S. dollar recorded its steepest annual drop since 2017—down almost 10% against a basket of major currencies—with many predicting further declines this year.
Fears of a collapsing U.S. dollar and the loss of Fed independence have sent the price of gold and silver to all-time highs, with those in the crypto space predicting bitcoin could be poised to benefit.
“The renewed surge in gold is a powerful signal of how global investors are repositioning amid a weakening U.S. dollar and growing uncertainty around monetary policy,” Gracy Chen, chief executive of Bitget, said in emailed comments.
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The bitcoin price has dropped from its 2025 peak but many remain confident it will surge back this year, issuing bullish bitcoin price predictions.
Forbes Digital Assets
“In moments like this, capital naturally moves toward assets that preserve value. What’s different today is that this search for safety is no longer limited to traditional instruments. Alongside physical gold and gold ETFs [exchange-traded funds], bitcoin is increasingly being viewed through the same lens—viewed by many as a modern hedge against fiat debasement.”
The gold price topping $4,600 per ounce has led to bitcoin price predictions that would see it far exceed its 2025 peak.
“Expectations of more accommodative economic policy, combined with lingering questions around central bank independence and a softer U.S. dollar, tend to favor scarce, non-sovereign assets like bitcoin and ethereum, reinforcing their appeal as alternative stores of value and liquidity anchors,” Lacie Zhang, research analyst at Bitget Wallet, said in emailed comments and putting her 2026 bitcoin price prediction at $180,000, “if these macro and adoption trends persist.”