During the early Asian session on Wednesday, Bitcoin (BTC) surpassed the $93,000 mark once again. This surge in value was observed following remarks by President Trump regarding the potential replacement of Federal Reserve (Fed) chair Jerome Powell.

In recent times, there has been a noticeable increase in the connection between Bitcoin and broader economic and political issues. This indicates a growing impact of macroeconomics on Bitcoin's performance.

Just a week ago, reports emerged suggesting an imminent change in the Fed chairmanship, attributed to economic pressures caused by Trump's Tariffs. The speculation was fueled by statements from Treasury Secretary Scott Bessent about interviewing candidates to succeed Powell.

Divergent views between Trump and Powell on interest rate cuts heightened concerns. Trump advocated for rate cuts to mitigate the impact of trade wars, while Powell advocated for a cautious monetary policy without further cuts.

However, Trump clarified that he currently has no plans to dismiss Powell, expressing a desire for more active interest rate reduction ideas. This announcement coincided with Bitcoin's price crossing the $93,000 mark, reaching $93,136 with nearly a 6% increase within 24 hours.

Bitcoin's sharp reaction to political uncertainties regarding Powell's status as Fed chair was highlighted. Arthur Hayes, BitMEX founder, underscored the market's sensitivity to such developments, emphasizing Bitcoin's role as a hedge against traditional financial instability triggered by political uncertainty.

Geoff Kendrick from Standard Chartered pointed out that Bitcoin is increasingly perceived as a hedge against risks associated with traditional finance and US Treasuries. Bitcoin's value surge is also attributed to the erosion of trust in governments and politicians, according to Nate Geraci, president of the ETF Store, as people seek alternative assets amid growing political uncertainty.