Bitcoin (BTC) was treading water just below $85,000 late Thursday as tensions between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell added another layer of uncertainty for investors.

Markets dipped on Wednesday after hawkish comments from Powell, who criticized Trump’s tariffs policy, saying that it would likely result in a slowing economy and rising prices — what economists call “stagflation.” In his remarks, Powell made clear his larger focus for now would be on prices, suggesting tighter Fed policy than otherwise thought.

Trump — who nominated the former investment banker and lawyer as Fed chair during his first term (Powell was given a second four-year term by President Biden) — has expressed his displeasure with Powell since retaking the White House. Powell, though, who is set to remain atop the central bank until May 2026, has repeatedly stated his determination to finish his term and suggested the president has no standing to fire him.

On Thursday, the WSJ reported that Trump has been privately discussing firing Powell for months, according to people familiar with the matter. Former Fed Governor Kevin Warsh is reportedly waiting in the wings as Powell’s replacement, but Warsh has lobbied the president not to move against the Fed chair, according to the story.

Joining Warsh in that warning is Treasury Secretary Scott Bessent, who said the move could roil already shaky U.S. markets as the central bank is supposed to be independent from political influences.

Odds of Trump removing Powell this year on the blockchain-based prediction market Polymarket rose to 19%, the highest reading since the contract’s late January launch.

Trump’s comments came on the back of the European Central Bank (ECB) cutting key interest rates for the seventh consecutive occasion on Thursday as it warned of a deteriorating growth outlook.

More pressure on markets came from the latest Philadelphia Fed manufacturing index, published Thursday morning, which showed a nosedive in activity this month, sinking to its lowest level (-26.4) in two years. Meanwhile, the prices paid index climbed to its highest reading since July 2022, adding to concerns about the Trump administration’s large-scale tariff policy pushing the U.S. economy into stagflation.

The S&P 500 and tech-heavy Nasdaq stock indexes traded mostly flat during the day.

A look at the crypto market showed BTC and Ethereum’s ETH up 0.8% over the past 24 hours. Most assets in the CoinDesk 20 Index traded higher during the day, with bitcoin cash (BCH), NEAR and AAVE leading gains.

How bitcoin traders position amid heightened fear on Wall Street ?

Bitcoin has stabilized between $83k and $86k with traders chasing bullish bets while still seeking downside protection.

On Deribit, traders are actively chasing calls at the 90k to $100k strikes expiring in May and June, the exchange said in a market update Thursday. The demand for calls indicates expectations for a continued price rally.

Some of these bullish bets have been funded by premiums collected by selling put options.

At the same time, there has been renewed interest in buying put options at $80k expiring this month, representing preparations for potential price declines. Buying a put option is akin to purchasing insurance against price slides.

The diverse two-way flow comes as the VIX, Wall Street’s fear gauge measuring the 30-day implied volatility, still remains well above its 50-day average, despite the pullback from recent highs above 50.

The VIX is warning that the macro situation is still unraveling rather than resolving, the exchange said on X.

The world’s sixth-largest crypto exchange by daily trading volume is now accessible to the American market.

In a statement, OKX says that it is accelerating its expansion in the US with the official launch of its centralized exchange and web3 wallet in the country.

The move enables existing OKcoin customers to migrate to the OKX platform, though new user registration won’t be available until later this year.

The Seychelles-based firm says the measured rollout will help ensure a secure onboarding process for customers.

OKX has also set up its headquarters in San Jose, California, and appointed former Barclays Investment Bank director Roshan Robert as the new US CEO as part of its US strategy.

Says Robert,

“This expansion in the United States is not only the expansion of the business map, but also a solemn commitment to ‘responsible growth’. In the face of the evolving regulatory environment, we are working closely with regulators and policymakers to ensure sound operation on a transparent and compliant basis.”

The exchange says it positions itself at the heart of Silicon Valley’s innovation system by setting up the new California headquarters.

“This strategic move strengthens OKX’s regional operations, enabling it to recruit top-tier talent, foster cutting-edge product development, and expand its presence in the world’s largest financial market.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Stanford lab, focused on AI research, will use the decentralized cloud computing platform Theta EdgeCloud for its work on LLMs.

The decentralized cloud could be the solution for AI’s vast computing needs. On April 17, Theta Labs revealed that Stanford University’s AI would use Theta (THETA) EdgeCloud in its work on large language models. The lab, led by Assistant Professor Ellen Vitercik, will use the platform for discrete optimization and algorithmic reasoning of LLMs.

Stanford joins a growing list of academic institutions using the decentralized platform for research. According to Theta Labs, other adopters of EdgeCloud include Seoul National University, Korea University, the University of Oregon, Michigan State University, and more.

Big tech and decentralized services compete for AI compute

Big tech companies have been rapidly expanding their investment in computing infrastructure, especially one geared toward powering AI. In 2024, Microsoft invested $3.3 billion in a data center in Wisconsin, with the backing of Joe Biden’s administration.

At the same time, Amazon stated it plans to spend $11 billion on data centers in Indiana. Google, on the other hand, is going global, investing $1.1 billion in its data center in Finland and building another one in Malaysia for $2 billion.

Still, the big tech model isn’t the only one competing for AI workloads. Unlike most traditional LLM services, Theta EdgeCloud operates as a decentralized cloud computing platform. Its infrastructure is geographically distributed, meaning it does not rely on massive centralized data centers to provide compute power.

Instead, the platform uses blockchain technology to reward smaller GPU providers based on the revenue they generate from users. This allows Theta to operate with lower capital expenditures and scale more quickly. In turn, it offers more affordable infrastructure for users.

Theta Network is a blockchain protocol originally designed for decentralized video streaming. However, the network has since expanded to provide decentralized infrastructure for cloud computing, with a particular focus on AI applications.