Trump's attack on the Fed's independence has raised concerns among investors, with gold and Bitcoin becoming new options for diversified investment.

U.S. President Trump’s ongoing attacks on the independence of the Fed are raising concerns among investors, prompting them to reassess dollar assets. Although gold, as a traditional safe-haven asset, has reached new highs, experts believe that Bitcoin, as a decentralized "digital gold," is becoming a new choice for investors to hedge against geopolitical and economic uncertainties, which may signal a new era no longer reliant on a single reserve currency.

Trump’s Unprecedented Pressure on the Fed

Since taking office, U.S. President Trump has taken a series of aggressive actions against the Fed, believing its monetary policy is ineffective. He has publicly commented, urging Fed Chairman Jerome Powell to cut interest rates to stimulate economic growth, and referred to him on social media as "Mr. Too Late" and "a complete moron."

Recently, the pressure on the political independence of central banks has reached new heights. Last month, Trump announced the dismissal of Fed board member Lisa Cook on the grounds of mortgage fraud allegations. Although a U.S. federal judge ruled that Cook could remain in office during the litigation and temporarily blocked the government's dismissal, the Trump administration has appealed.

Experts unanimously believe that, although there have been precedents in American history of government pressure on the Fed (such as Presidents Nixon and Johnson), the current public attempt to fire Fed officials through legal means is unprecedented.

Investors seek hedging as the dollar's position is under pressure

Experts point out that President Trump publicly attacking the Fed on social media has led investors to start taking this threat seriously and assess the risks of the Fed's independence being compromised.

The weakening of trust in the U.S. government will inevitably affect the status of the dollar. If this controversial environment continues, the U.S. economy may experience significant instability. Santiago Sabater, Executive Director of Jelly Labs, warned that this could lead to sustained inflation, rising bond yields, and erosion of the dollar's status as the world's reserve currency.

Market data has begun to reflect investors' unease. Gold, as a traditional "safe-haven" asset, has seen its price soar to over 3600 dollars per ounce, setting a new historical high. Meanwhile, central banks around the world are aggressively purchasing gold. A survey by the World Gold Council shows that most central banks plan to increase their gold reserves. This marks the first time since 1996 that global central banks' gold holdings have exceeded their holdings of U.S. Treasuries, indicating that countries are taking strategic actions to reduce their dependence on the dollar.

Gold and Bitcoin: A New Choice for Modern Investment Portfolios

As the price of traditional safe-haven asset gold rises, a new and powerful alternative—Bitcoin—has also emerged. Experts generally believe that Bitcoin possesses unique and valuable characteristics that cannot be fully replicated by any other asset.

ZIGChain co-founder Abdul Rafay Gadit stated: "Gold serves as a reliable hedging tool in uncertain times, while Bitcoin adds a digital dimension: it is decentralized, portable, and is increasingly viewed as 'digital gold'. Together, they form a dual hedge - one with centuries of credibility, the other with technology and infrastructure that aligns with the direction of global financial evolution."

He believes that, in the long run, investors will undoubtedly consider these inherent advantages.

The Dawn of a New Currency Era?

Experts believe that these latest developments may ultimately end the world's "dependence" on the dollar. They point out that events that have occurred over the past few years have shown that the single global reserve currency model lacks sustainability. They believe that we may be on the brink of a new monetary era, in which the world will no longer rely on a single currency, but rather on a basket composed of multiple currencies and assets.

Although economic crises and market instability are not new, the pace of technological advancement is unprecedented. The characteristics of Bitcoin have come at the right time, providing people with a new way to manage assets—especially in the context of prevailing uncertainty.

Conclusion

The growing political and economic uncertainty in the United States is accelerating a long-term trend: the diversification of the global financial system. Gold, as a time-honored store of value, is increasingly solidifying its position, while Bitcoin, as an emerging decentralized "digital gold," is also becoming an important tool for investors to diversify risks and hedge against uncertainty. Although the road ahead remains uncertain, it is clear that the world is moving towards a financial future that no longer relies on a single government or currency, and assets like Bitcoin and gold will play an increasingly central role in this new system.