Gold Suffers Steepest 46-Year Drop as Bitcoin Rebounds—Trump’s Federal Reserve (U.S. central bank) Picks Jolt Markets

Trump’s nomination of Fed chair Christopher Waller strengthened the USD, triggering gold’s largest drop in decades while Bitcoin rallied sharply, reflecting shifting asset demand under policy uncertainty.

BTC

Summary

Gold posted its largest single-day percentage drop in 40 years on Friday, while silver suffered a record intraday plunge, overturning a year-long rally. The declines followed U.S. President Donald Trump’s nomination of Christopher Waller as Federal Reserve chair, which boosted the U.S. dollar and reduced demand for dollar-denominated precious metals. Month-end portfolio rebalancing added further downward pressure. In contrast, Bitcoin rebounded by approximately ¥500,000 within 24 hours of earlier losses tied to the nomination news, highlighting divergent investor behavior between traditional safe-haven assets and cryptocurrencies.

Terms & Concepts
  • Safe-haven asset: An investment perceived to preserve value during market stress, such as gold or U.S. Treasurys.
  • Market volatility: The degree of price fluctuation in assets; often elevated during policy uncertainty and leadership changes.