Trump Criticizes Fed Chair Powell at Davos, Hints at Replacement

Key Points:

  • Trump criticizes Fed Chair Powell at Davos, suggests a leadership change.
  • Market sees volatility due to possible monetary policy shifts.
  • Uncertainty impacts risk assets like Bitcoin and Ethereum.

In a speech at Davos, Donald Trump expressed his dissatisfaction with current Fed Chair Jerome Powell, signaling upcoming changes to the Federal Reserve’s leadership.

Trump’s criticism and potential new leadership could impact monetary policy, affecting risk assets like Bitcoin and Ethereum.

Historical Market Volatility Tied to Fed Leadership

As of January 22, 2026, Bitcoin holds a market cap of roughly $1.79 trillion, with a current price of $89,693.52, according to CoinMarketCap. The cryptocurrency shows a notable seven-day decline of 6.09% percent, and its trading volume dropped by 34.94% within 24 hours.

Historically, changes in U.S. monetary policy have significantly impacted volatile assets like Bitcoin, revealing correlations between rate decisions and crypto price movements.

Market Insights and Future Expectations

Did you know? Historically, past hawkish stances have dampened crypto growth, while dovish policies tended to encourage risk-taking in digital currencies.

Insights from the Coincu research team suggest that Trump’s specific criticisms of Powell’s interest rate strategy heighten expectations for future rate cuts if a new chair is appointed. Market participants continue to speculate on potential policy changes that could enhance investor sentiment.

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Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 20:08 UTC on January 22, 2026. Source: CoinMarketCap

These potential shifts could be favorable for risk assets, including cryptocurrencies like Bitcoin and Ethereum.

Source: https://coincu.com/markets/trump-fed-chair-replacement/