The escalation of US President Donald Trump’s attack on the independence of the Federal Reserve system is worrying investors. From cutting interest rates from Jerome Powell’s chairman to firing Gov. Lisa Cook, these measures have shaken the confidence of American institutions and investors in the US dollar.
Trump’s move represents historically unknown territory in US monetary policy, according to representatives from Bitget, Jelly Labs, Wefi and Zigchain. They also believe that while gold is always there to be softening in times of uncertainty, investors may begin to rely on Bitcoin to protect their portfolios from government-controlled currencies.
Escalating political pressure on the Federal Reserve
Since taking office, President Trump has made a series of attacks on the Federal Reserve on what he considers as inadequate monetary policy.
Even before taking office, Trump made a series of public comments to Chairman Jerome Powell urging him to cut interest rates and stimulate economic growth. In various social media posts, the president called Powell “Mr. is too late” and “a complete and total idiot.”
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These pressures on central bank political independence have recently reached new heights. Last month, Trump announced the firing of Federal Reserve Governor Lisa Cook for allegations of mortgage fraud.
Cook later filed a lawsuit against Trump, citing illegal attempts to undermine the Fed’s independence. Two days ago, a US district judge sided with the chef, temporarily blocking the administration from removing her. Since then, Trump has appealed the decision.
Why this is different
History shows that this is not the first time the US government has put pressure on the Federal Reserve over the differences between the former political agenda and the latter monetary policy.
For example, former President Richard Nixon decided to avoid the recession in the 1972 reelection campaign. Nixon’s conversation, revealed later on Nixon’s tape, shows that he urges then-chairman Arthur to lower interest rates and increase the supply of money to stimulate the economy.
More famously, former President Lyndon B. Johnson physically pushed then-chairman William McChesney Martin Jr. over the Fed’s decision to raise interest rates during the Vietnam War.
However, experts agree that current levels of intervention are unprecedented.
“In its 112-year history, the US president sitting down refused to remove the Federal Reserve Governor or Speaker. The situation at Lisa Cook is highly polarized as it prevents US judges from firing the Fed governor. The Trump administration is not known to step back from the legal hurdles.
If the Trump administration wins its appeal, it will undermine the legal foundation of Fed independence, potentially allowing central banks to be perceived as a political tool.
Witnessing these developments, investors are asking important questions: What is the best investment strategy right now?
How is the market responding to attacks on the Fed’s independence?
Wefi CEO Maksym Sakharov has discovered that recent attacks on the central bank are particularly surprising.
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Investors have already been warned about this.
“For investors, this is a completely different ballpark. In the past, noise is likely because markets could largely dismiss such political noise. But today’s threats look reliable, and markets are beginning to price the risks of the compromised Fed,” Sakharov said.
Meanwhile, reducing investors’ confidence in the US government will inevitably induce the dollar. If this controversial environment continues, the US economy experiences great instability.
“If policymakers do not take financial measures to restore trust and instead continue to erode its policies, the outcome may be significant. You may see sustained inflation. As investors demand a higher risk premium, bond yields will increase, increasing pressure on the dollar’s status as a global reserve.” Polarization – could lead to a period of unstableness before the system is reset. ”
In fact, the data already shows investors are reassessing their trust in the US dollar.
Global shift from the US dollar
Various market metrics are diversifying away from investors’ growth trends, reallocating assets and linking them to the US.
Earlier this week, gold prices surged above $3,600 per ounce, setting a new record. As a traditional “safe shelter” asset, this price rise indicates a growing concern among investors over economic and geopolitical instability.
Meanwhile, the bond market is also reinforcing this sense of uncertainty.
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“We’re already looking at a deeply reversed yield curve, which shows that the market expects economic stress. This follows that, in the event that long-term bond yields increase, despite financial or financial intervention, this truly loses confidence in the Fed’s ability to control inflation,” Sabater said.
Central banks around the world are exploding, buying a fair amount of money. A survey by the World Gold Council in mid-2025 shows that most central banks plan to increase reserves.
In fact, for the first time since 1996, Global Central Bank Gold Holdings outweighs its US Treasury holdings. A key driver of this trend is strategic efforts to reduce reliance on the US dollar as the world’s leading reserve currency.
On a more personal level, investors are also beginning to diversify their portfolios.
A new currency era?
According to Sakharov, these recent developments could ultimately end the global “addictions” to the US dollar.
“For decades, the world has relied on the dollar as its global reserve currency. But events over the past few years show that this model lacks sustainability. The US has abused its position by printing trillions of dollars and using the dollar as a political weapon,” he says, and the assets. ”
Gold’s five,000-year history as an important hedge against risk is unparalleled. But now, a new and powerful alternative has emerged: Bitcoin.
Bitcoin and Gold: Modern Portfolio Diver Agents
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Experts are split over whether Bitcoin will eventually trade for gold or coexist. However, they generally agree that Bitcoin has unique and valuable properties that other assets cannot replicate completely.
“Today, gold emphasizes its role as a reliable hedge in an uncertain age. Bitcoin adds a digital layer. It is decentralized, portable, and is increasingly being treated as ‘digital gold’. Zigchain co-founder Abdul Rafay Gadit told Beincrypto Zigchain co-founder Abdul Rafay Gadit, who represents a double hedge with centuries of reliability.
He believes investors will definitely consider these inherent benefits in the long term.
“Structural diversification will likely result in a lower dependence on the dollar and greater adoption of tokenized, transparent financial infrastructure. Catalytic events and policy changes will maintain the sentiment between the optimism and attention of “procrypt” and maintain the strongest flow that is concentrated on assets that are considered safe havens. ”
According to Sakharov, Stablecoins become a key link between traditional financial and digital assets.
“On the crypto side, we track the influx of stubcoins. This is a digital token covered in price that serves as a cash bridge to crypto. The rapid rise suggests money seeking shelter outside the banking system. From there, a short step into the real to Bitcoin,” he said.
These parallel trends suggest an upward trend in new investors’ thinking.
Does the world move beyond the dollar?
The economic crisis and market instability are not new, but there is an unprecedented speed of technological advancement. These changes inevitably provide a new way to rethink the long-standing monetary system.
Slowly, but certainly, Bitcoin wealth rises on opportunity, offering people an alternative way of managing money, especially in the context of instability reigning.
“It’s the only asset that is completely decentralized, global and neutral. It’s people’s money for people. When you can’t trust the person in charge, it becomes very powerful,” concluded Sakarov.
The growing political and economic uncertainty in the US could encourage new approaches to global finance that are not dependent on a single reserve currency. It’s still too early, but things seem to be moving in that direction.
