Bitcoin Breaks $93,000 as Trump Says He Won't Fire Fed Chairman Powell
Amid escalating economic and political tensions in the US, Bitcoin (BTC) made a strong jump above $93,000 early Wednesday morning in Asia. The move came shortly after former President Donald Trump said he had no plans to replace Federal Reserve Chairman Jerome Powell.
Trump Calms Tensions: "I'm Not Going to Fire Powell"
Reports of Powell's possible firing spread last week, after Treasury Secretary Scott Bessent revealed that the Trump administration was considering potential candidates to replace him. Public disagreements between Trump and Powell, particularly over interest rate cuts to mitigate the impact of the trade war, have left many investors concerned about a leadership change at the Fed.
However, speaking to reporters in the Oval Office on Tuesday, Trump asserted:
“I have no intention of firing him… I just want to see a more aggressive approach to cutting interest rates.”
Bitcoin Reacts Strongly, USD Weakens
Immediately after the above statement, Bitcoin reacted positively, surpassing the $93,000 mark with a gain of nearly 6% within 24 hours, reaching $93,136 at the time of writing. Meanwhile, the US dollar index (DXY) continued to decline, hitting a three-year low.
Arthur Hayes, founder of BitMEX, shared sarcastically on social media:
“Trump says he will fire JAYPOW – dollar plummets, BTC explodes. Trump says he won’t fire – dollar remains weak, BTC continues to rise!”
The volatility of the dollar is acting as a catalyst for Bitcoin, cementing its status as a safe haven asset against traditional financial turmoil.
Bitcoin - A Hedge Against the Traditional Financial System?
Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, believes that Bitcoin is emerging as an effective hedge against risks associated with the US Treasury and the TradFi (traditional finance) system.
“Bitcoin is now being seen as a dual hedge – against the risks of the traditional financial system, but also against the uncertainties surrounding the US Treasury,” Kendrick said in an interview with BeInCrypto.
In a similar vein, Nate Geraci, President of the ETF Store, believes that the loss of trust in governments and politicians is driving a wave of asset movements into alternatives like Bitcoin.
Powell’s 13-Month Term – What’s Ahead?
Jerome Powell still has more than a year left in his term as Fed Chairman. However, if Trump is re-elected and continues to put pressure on monetary policy, the global financial market may face many unpredictable scenarios.
Bitcoin, in this scenario, is expected to continue to attract investment flows as a non-governmental asset, demonstrating the power of blockchain technology and the shift of trust from the old system to decentralized finance.
With the volatile political and economic context and the Fed at a crossroads, Bitcoin is not simply a digital asset but is gradually becoming a barometer of global investor confidence.