The cryptocurrency market experienced significant gains in the past 24 hours, fueled by remarks from Federal Reserve Chairman Jerome Powell. Powell’s warnings regarding political pressures increased concerns about monetary policy independence, prompting investors to seek safe havens. In this environment, privacy-focused cryptocurrencies stood out as market leaders.
Safe Haven Pursuit Elevates Cryptocurrencies
Bitcoin surged by 1.5%, reaching $92,047 late Sunday. Ethereum increased by 1.99%, reaching $3,157, while Solana jumped by 4.81% to $142.53. The most notable movements were observed in privacy-themed tokens, with Monero gaining 17.9% to $574.09 and Zcash rising 9.76% to $410.92.
This price momentum followed Powell’s video message revealing he might face criminal charges due to his congressional testimony in June 2025. Powell emphasized the Federal Reserve’s decisions are made in public interest rather than aligning with presidential preferences, reflecting pressures on Fed’s autonomy during this period.
Analysts noted gold’s sharp rise during the same period, signaling investor skepticism towards the dollar-centered financial system. Spot gold prices rose by 1.3% to $4,569, with cryptocurrencies also attracting demand as protection.
Political Tensions and Macro Calendar Impact
Former President Donald Trump’s critiques on the pace and depth of interest rate cuts have remained prevalent. Trump advocates for reducing policy rates to 1% or lower, exerting pressure on the Fed. Experts suggest these statements should be analyzed alongside messages from the Department of Justice.
Research institutions highlight technical buying and expectations for regulatory frameworks as supportive factors for the rise. Draft laws in the U.S. targeting increased transparency and liquidity in digital asset markets are under traders’ watch. Developments on the Powell-DOJ front, tax cut debates, and the upcoming U.S. Consumer Price Index announcement on Tuesday are likely to garner attention in the coming week.
Some market players warn of potential volatility spikes at the U.S. session opening. Yet, the macro outlook favoring cryptocurrencies is strengthening. Below-expectation non-farm payrolls, rising gold prices, and recent leverage position adjustments are sustaining risk appetite. Goldman Sachs’ decision to delay interest rate cut forecasts to summer 2026 hints at supportive liquidity conditions in the medium term.
