- US President Trump hints at replacing Fed Chair Powell, sparking market and Bitcoin volatility.
- Bitcoin gains attention as investors brace for policy shifts and Fed uncertainty.
Bitcoin traders are paying close attention to President Donald Trump’s latest update that he may soon announce a replacement for Federal Reserve Chair Jerome Powell. The news is rattling markets, with analysts warning it could spark fresh volatility in traditional finance and cryptocurrency.
Trump Signals Change at the Fed, Markets React
On June 6, President Donald Trump told reporters he would soon reveal his pick for the next Federal Reserve Chair. He mentioned this even though the current chair, Jerome Powell, is not due to end his term until May 2026.
This development has stirred concern in financial circles. Notably, this is particularly worrisome as President Trump had earlier suggested removing Powell. President Trump previously criticized Powell’s handling of interest rates and the U.S. economy. As CNF reported earlier, President Trump regularly hits out at Powell, claiming he is “too late and wrong.”
However, as highlighted in our previous news article, he backed down from firing Powell in April. Notably, the issue has returned to the spotlight. Now, talk of a new Fed Chair is emerging to steer early monetary direction in the country.
It is worth noting that the U.S. Dollar Index has already shown its sensitivity to Trump’s comments in recent months. When he first raised the idea of replacing Powell, the dollar weakened, and Bitcoin gained ground. Analysts say this pattern could repeat as confidence in the Fed’s independence is questioned.
Even though legal experts noted that Powell cannot be dismissed without just cause, President Trump may attempt to install a preferred candidate ahead of time. The nominee would not lead the Fed immediately, but could still influence sentiment through public remarks and market expectations.
Scott Bessent, now Treasury Secretary under Trump’s core economic team, has supported shaping the Fed’s future path even before Powell exits. The market response has been immediate, with investors trying to assess how far Trump might go.
Bitcoin Poised to React as Uncertainty Grows
The possible shake-up at the Federal Reserve has brought Bitcoin’s price back into the spotlight. As of this writing, MarketCap data shows Bitcoin has jumped 1.5% and is trading at $105,536.85.
Interestingly, many now view Bitcoin as a hedge against inflation and protection from risks linked to traditional finance. Geoff Kendrick from Standard Chartered says the threat to Powell is part of a wider Treasury risk. Additionally, Bitcoin tends to benefit when trust in public institutions weakens.
If Trump installs someone willing to cut rates aggressively, it could ease financial conditions and set the stage for a crypto bull run. Altcoins, which have lagged behind this year, might also benefit if the quantitative tightening program slows down.
However, the move is not without risk. Market insiders say removing Powell prematurely could cause legal uncertainty and global financial tension. Still, Bitcoin is a key indicator whenever U.S. monetary policy is in flux.
Beyond Powell replacement talks, the US president has also been in the news for several reasons this week. In a recent update, we covered that an ongoing public feud between U.S. President Donald Trump and Elon Musk led to over $964 million in liquidation in crypto futures.
Additionally, as highlighted in our news report, a recent S-3 filing shows that Trump Media and Technology Group (TMTG) has registered to raise $12 billion in securities. This money could be used to fund new Bitcoin purchases.
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Source: https://www.crypto-news-flash.com/trump-wants-powell-out-bitcoin-to-soar/?utm_source=rss&utm_medium=rss&utm_campaign=trump-wants-powell-out-bitcoin-to-soar