Bitcoin Sees Modest Gains Amid Broader Crypto Retreat and Trump-Fed Tensions

Bitcoin Rises Slightly on Strategy's $555.8 Million Purchase

Bitcoin gained 0.7% to $88,194.9 on Tuesday, driven by Michael Saylor’s Strategy purchasing 6,556 BTC for $555.8 million. This acquisition, funded through stock offerings, brings Strategy’s total Bitcoin holdings to 538,200 coins, reinforcing its position as the largest corporate Bitcoin holder. The move provided a temporary sentiment boost, though Bitcoin remains down 5.6% year-to-date amid broader economic uncertainty.

Broader Crypto Markets Retreat

Despite Bitcoin’s modest rise, the broader crypto market declined. Ether dropped 4% to $1,584.52, while XRP fell 2.4% to $2.0790. Solana and Cardano also saw declines of 1% and 2.6%, respectively. Polygon was a standout performer, rising nearly 7%. Meme tokens like Dogecoin and $TRUMP saw small drops of 0.3% and 0.4%, respectively.

Trump's Fed Criticism Adds to Market Jitters

Investor sentiment remained skittish as U.S. President Donald Trump intensified criticism of the Federal Reserve, calling for preemptive rate cuts. Concerns over Trump’s attempts to influence Fed independence, including reports of efforts to remove Chair Jerome Powell, further rattled markets. Powell has maintained that rate cuts are unlikely and plans to serve his full term through May 2026.

Economic Uncertainty Weighs on Risk Appetite

The U.S.-China trade war and Trump’s tariffs continue to cloud the economic outlook, dampening risk appetite. Strategy’s earlier disclosure of a $6 billion unrealized loss on its digital assets also lingered over the market, despite its latest purchase. Overall, while Bitcoin saw a slight uplift, the broader crypto market reflected ongoing caution amid political and economic headwinds.