Wall Street Stumbles After Holiday as Trump Ramps Up Fed Criticism and Bitcoin Surges Past $88K

Markets reopened Monday with a rough start following the long holiday weekend, echoing past volatility. The Dow Jones, Nasdaq, and S&P 500 each fell roughly 3.5% in early trading, weighed down by ongoing uncertainty in global trade talks and fresh remarks from former President Donald Trump targeting Federal Reserve Chairman Jerome Powell.

The U.S. dollar also hit a three-year low, deepening investor concerns.

Trump, taking to Truth Social, reiterated calls for aggressive interest rate cuts, arguing that inflation is no longer a threat. “With energy and food prices dropping—yes, even ‘Biden’s egg disaster’—inflation is virtually gone,” he posted. “The only real danger now is economic slowdown, and Powell is once again behind the curve.”

Trump accused Powell of acting politically during the last election cycle, referencing the European Central Bank’s seven rate cuts over the past year as a contrast to the Fed’s more cautious stance.

While traditional markets faltered, Bitcoin defied the trend. The cryptocurrency surged past $88,000 for the first time in over a month, buoyed by rising global liquidity and renewed institutional demand. According to Kronos Research’s Dominick John, “Bitcoin’s breakout is being driven by expanding M2 money supply and large-scale accumulation by firms like Strategy.”

Strategy, a major institutional player, added another 6,556 BTC to its holdings last week, bringing its total to 538,200 BTC—currently valued at around $47 billion.

As Wall Street grapples with rate policy and political crossfire, crypto appears to be carving out a bullish path of its own.