Trump Could Replace Fed Chairman Powell Is Bitcoin Preparing for a Big Leap?
Former US President Donald Trump's hint at the possibility of replacing Federal Reserve Chairman Jerome Powell has fueled speculation about a major monetary policy shift. Not only have traditional financial markets been shaken, but the cryptocurrency market, especially Bitcoin, is also preparing for a strong surge, with the goal of returning to the $105,000 price range.
Trump Reveals the "Ghost" of a New Fed Chairman
On June 6, Trump announced that he would soon announce his choice for the next Fed Chairman, even though Powell's term is set to expire in May 2026. This move was called a "policy earthquake" by analysts, given the Fed's far-reaching influence on the entire US and global financial systems.
The market reacted violently shortly after the announcement. Previously, in April, when Trump first proposed replacing Powell, the DXY (Dollar Index) fell, while Bitcoin surged on expectations of monetary easing.
"This could be a market-shattering factor. It could trigger a strong bull run for crypto or a major crash," said Rananjay Singh, founder of TodayCrypto.
Does Trump Have the Authority to Remove Powell?
Legally, Trump cannot unilaterally fire a Fed Chairman who is appointed for a fixed term unless there is a serious reason such as ethical or legal misconduct. However, he can nominate a successor ahead of time to put political and psychological pressure on the Fed.
According to Scott Bessent, founder of Key Square Capital and former financial advisor to Trump, appointing a "chairman-in-waiting" would tarnish Powell's reputation and directly affect the direction of interest rates.
“If Trump’s nominee were to speak out on easing policy, that would be enough to cause financial markets to adjust,” said financial expert Jon Herold.
Bitcoin and Altcoins: From Risk to Golden Opportunity
Bitcoin, long seen as a hedge against inflation, is increasingly seen as a hedge against systemic risk and the instability of traditional monetary policy.
Geoff Kendrick, Head of Digital Assets at Standard Chartered, commented:
“Bitcoin is now a hedge against the risk of the US Treasury, especially given the potential for political interference in the Fed.”
The US economy is facing huge fiscal pressures as borrowing costs rise. Trump has repeatedly criticized Powell for not cutting interest rates soon, saying this has cost the US “too much”.
If Trump succeeds in getting his cronies into the Fed, the loose monetary policy and liquidity injections could be restarted, a clear “green” signal for the crypto market. Accordingly, Bitcoin could recover strongly, heading towards historical peaks.
Is Altseason Closer Than Ever?
Not only Bitcoin, altcoins could also benefit. Altcoins have been “stuck” since 2025 due to the delayed quantitative tightening (QT) program and interest rate cut expectations. A Trump-friendly Fed could change all that.
“This is the most important news for altcoin investors. QT is the main reason for the delay of altseason. If Trump has his people at the Fed, a new altcoin cycle could begin,” commented analyst Cas Abbé.
Risks and Opportunities Coexist
However, some experts also warn of significant risks. A mid-term political change in the Fed chair could be a “black swan” for global financial markets, sending ripples of uncertainty from the US to emerging economies.
World of Finance on social media X warned:
"This could be an unprecedented event. It could either start a bull run or cause a systemic shock."
Conclusion: Bitcoin Is on a Political Volcano
Donald Trump's push to take over the Fed's hot seat is not only a power play, but also a major catalyst for both traditional and crypto markets. While it remains unclear whether he will act decisively, the mere hint of a possible policy change is enough to send Bitcoin and altcoins into overdrive.
If you're an investor, it's time to keep a close eye on every political move from Washington, as this could usher in the next bull run for cryptocurrencies.