Bitcoin (BTC) drew water just under $ 85,000 late Thursday when tensions between US President Donald Trump and Federal Reserve President Jerome Powell added another layer of uncertainty for investors.

Markets dipped Wednesday after Hawkish comments from Powell criticizing Trump’s customs policy said it would probably result in a slower economy and rising prices – what economists call “stagflation.” In his remarks, Powell made it clear that his greater focus would now be on prices, suggesting that a tighter fed policy than otherwise believed.

Trump-there nominated the former investment banker and lawyer as the Fed Chairman during his first period (Powell got another four-year period by President Biden)-Has expressed his dissatisfaction with Powell since Retaking The White House. However, Powell has ready to remain at the top of the central bank until May 2026, repeatedly declared his willingness to end his period and suggested that the president has no status of shooting him.

On Thursday, WSJ reported that Trump has been privately discussed by shooting Powell for months, according to people who are familiar with the case. Former Fed Governor Kevin Warsh is reportedly waiting in the wings as Powell’s replacement, but according to history, Warsh has lobbyed not to move towards the Fed Country, according to history.

Participation in Warsh in this warning is Treasury Secretary Scott Bessent, who said the move could already roil US markets as the central bank was to be independent of political influences.

Odds for Trump removed Powell this year on the blockchain-based prediction market the polymarket rose to 19%, the highest reading since the contract’s launch of the end of January.

Trump’s comments came on the back of the European Central Bank (ECB), which cuts key prices for the seventh consecutive occasion on Thursday when it warned of a worsening growth prospects.

More pressure on the markets came from the latest Philadelphia Fed Manufacturing Index, which was published on Thursday morning, which showed a nose in activity this month, sinking to its lowest level (-26.4) in two years. Meanwhile, the paid prices that were paid for index rose to its highest reading since July 2022, adding concerns about the Trump administration’s great customs policy pushing the US economy to stagflation.

The S&P 500 and Tech-Tung Nasdaq stock indexes traded mostly flat during the day.

A look at the crypto market showed BTC and Ethereums ETH 0.8% over the last 24 hours. Most assets in the Coindesk 20 index are traded higher during the day with Bitcoin Cash (BCH), near and aave leading gains.

How Bitcoin dealers position in the midst of increased fear on Wall Street?

Bitcoin has stabilized between $ 83K and $ 86K, with dealers chasing bullish bets while still seeking downward protection.

On dismissal, dealers actively chase calls to 90K to $ 100,000 strikes expiring in May and June, the exchange said in a market update on Thursday. The demand for calls indicates expectations of a continued price rally.

Some of these bullish bets have been funded by prizes collected by selling put options.

At the same time, there has been renewed interest in buying put options for $ 80,000 that expires this month, representing the preparations for potential price drops. Buying a put -setting is equivalent to buying insurance against price pictures.

The various two-way stream comes as VIX, Wall Street’s fear gauge, which measures the 30-day implicit volatility, still remains well above its 50-day average despite the withdrawal from the recent heights above 50.

VIX warns that the macro situation is still loosened instead of solving, Exchange said at X.