A recent analysis by Standard Chartered suggests that Bitcoin is re-emerging as a favored hedge against systemic risk due to political concerns over the independence of the US Federal Reserve.
This concern coincides with rising unease about the Fed’s autonomy and the stability of the American financial system.
Tensions have escalated due to President Trump’s criticism of Fed Chair Jerome Powell, his calls for lower interest rates, and even his suggestion to replace Powell before his term ends in 2026.
These pressures have led to sell-offs in equities and currencies, with US Treasury rates reaching a 12-year high.
Experts warn that compromising the Fed’s independence could lead to widespread consequences, including increased inflation, higher long-term interest rates, and diminished confidence in the US dollar as the global reserve currency.
