Powell

Elizabeth Warren has warned that the stock market will crash if Trump fires Powell, raising the possibility of crypto market crashing too.
Senator Elizabeth Warren has sounded a warning to US President Donald Trump about firing Fed Chair Jerome Powell. The Senator believes such action will crash the stock market, while it is also possible that the crypto market could follow suit.
Elizabeth Warren Says Trump Firing Powell Will Crash Stock Market
In a CNBC interview, Senator Warren, a member of the Banking Committee, stated that the stock market would crash if US President Donald Trump were to fire Fed Chair Jerome Powell. She explained that the Fed’s supposed independence is the infrastructure that keeps the market strong.

As such, if Trump were able to fire Powell, this would erode the US Central Bank’s independence and send a message to market participants that politics can influence the Fed’s economic decisions, which is bearish for the markets.
Warren’s warning is significant because the crypto market could also follow suit if the stock market were to crash following Powell’s termination.
IntoTheBlock data shows that the Bitcoin price has a 0.63 correlation with the S&P 500, indicating a strong positive correlation between $BTC and stocks.


Therefore, crypto assets, led by Bitcoin, could witness another crash alongside the stock market if Trump fires Powell.
The US president has hinted over the past few weeks that he is looking forward to the Fed Chair’s departure. However, traders are betting against Trump firing Powell this year.
Other Reasons To Still Be Bullish
While discussions grow on whether Trump will fire Powell or not, there are still other reasons to be bullish on the Bitcoin price and the broader crypto market.
As CoinGape reported, the US president recently signaled a potential end to the US-China trade war, which is bullish for the market, seeing the negative impact tariffs have had so far.
Meanwhile, the US continues to push for a ceasefire in the Russia-Ukraine war. Although it seems no progress has been made so far, Trump’s insistence could eventually pay dividends with Putin and Zelensky reaching an agreement.
From a technical analysis perspective, crypto analyst Titan of Crypto also suggested that BTC and altcoins may have bottomed out.
He noted that BTC is holding well at a key support, while some are already calling it “dead”.

His accompanying chart indicated that BTC could soon reclaim the $100,000 price level. The broader crypto market is expected to rebound alongside the flagship crypto if this happens.

#bitcoin #FederalReserve #Powell #FederalReserveIndependence #TRUMP

A significant turning point has just emerged on the legal map of crypto in the US. Federal Reserve Chairman Jerome Powell has publicly emphasized the urgency of developing a legal framework for stablecoins, while signaling that the US financial system may soon 'open its doors' to the cryptocurrency sector – particularly stablecoins – in the near future.

the ongoing developments around what’s now being dubbed the #PowellCrisis. Here’s a quick breakdown of the situation,

What’s happening:

Trump is strongly signaling he wants to remove Federal Reserve Chair Jerome Powell, criticizing him for keeping interest rates high.

France’s Finance Minister just chimed in, warning that firing Powell would undermine global confidence in the U.S. dollar and central bank independence.

This isn't just a U.S. issue anymore—it’s turning into a global financial concern.

Why it matters:

Legally murky territory: The Fed Chair is appointed for a four-year term, and the President can only remove them “for cause,” which typically means serious misconduct—not just policy disagreements.

A Supreme Court case related to agency independence could set a new precedent for how much power a President has over bodies like the Fed.

Market Reaction:

Stock markets are jittery

The dollar is showing signs of weakness

Global markets are watching closely

Political voices:

Elizabeth Warren and others are warning that this level of interference could “crash the entire market.”

It’s a perfect storm of politics, monetary policy, and global trust. Definitely one to keep a close eye on.

Insights into Safe Havens like Bitcoin During Institutional Instability:

1. Bitcoin as a Hedge Against Fiat Currency Instability: Bitcoin has often been referred to as digital gold due to its fixed supply of 21 million coins, which contrasts with the inflationary nature of fiat currencies. When markets experience uncertainty—like a potential shift in U.S. monetary policy or issues related to central bank independence—Bitcoin offers a deflationary alternative. With the U.S. dollar showing signs of weakness in response to political pressures on the Fed, people may flock to Bitcoin as a store of value that is not subject to the whims of central bank decisions.

2. Decentralization as a Trust Factor: One of the key benefits of Bitcoin is its decentralized nature. Unlike traditional financial systems, Bitcoin is not controlled by any central authority, government, or institution. In times of political and institutional instability (like the debate surrounding Powell's position), people may seek refuge in decentralized assets to avoid the risk of government or central bank interference. As fiat systems and central banks come under scrutiny, decentralized finance (DeFi) and cryptocurrencies present a more transparent and less politically influenced alternative.

3. Bitcoin’s Hedge Against Global Financial System Uncertainty: The ongoing debate around the Federal Reserve's independence and Trump’s potential push to remove Jerome Powell raises questions about the stability of U.S. monetary policy. This uncertainty could lead to broader concerns about the stability of the U.S. dollar and, by extension, the global financial system. As a result, Bitcoin and other cryptocurrencies can serve as a hedge against these risks. Crypto markets are not directly tied to any single nation’s monetary policy, which can give investors a sense of security when global financial systems appear unstable.

4. Bitcoin as a Portfolio Diversification Tool: In times of market volatility, diversification becomes crucial. Bitcoin’s performance is often uncorrelated with traditional markets, meaning that it doesn’t always follow the same trends as stocks, bonds, or commodities. When stock markets are jittery and the dollar is weakening, Bitcoin’s independent trajectory could offer a safe haven for investors looking to reduce their exposure to traditional assets that are vulnerable to political risk or instability.

5. Cryptocurrencies as a Gateway to Financial Freedom: In a climate where there is growing concern about centralized power—whether it’s the control exercised by a central bank or government—Bitcoin offers a way to bypass traditional financial intermediaries. It’s a system where individuals have more control over their wealth without the need for approval from banks, financial institutions, or government entities. This level of autonomy and privacy is increasingly appealing in uncertain times.

6. Bitcoin's Role in the Broader Shift Toward Digital Assets: The growing interest in cryptocurrencies, driven by institutional adoption and retail investment, reflects a broader shift toward digital assets as a legitimate store of value. As global financial markets become more volatile due to policy decisions, geopolitical tensions, or institutional disruptions, Bitcoin's role as a non-sovereign, borderless asset is likely to gain more attention as an alternative to traditional financial products.

How This Plays Into Crypto Adoption:

With concerns about traditional financial institutions and their role in managing economies, Bitcoin stands as a beacon for financial sovereignty. This could encourage more people to explore crypto adoption, not just as a speculative investment but as a means of protecting wealth against systemic risk.

The ongoing discussions about the Federal Reserve, interest rates, and political interference could drive more institutional and retail investors toward the safety and independence that Bitcoin offers. If Bitcoin is seen as a stable alternative amidst uncertainty, it could boost its role in the mainstream financial ecosystem.

Conclusion:

In light of political and financial instability, especially surrounding the Federal Reserve’s leadership, Bitcoin and other decentralized assets provide an opportunity for individuals and investors to safeguard their wealth from central authority manipulation. As traditional systems face volatility, cryptocurrencies like Bitcoin offer a hedge and serve as a reminder of the power of decentralization in securing financial independence. This increasing shift toward Bitcoin as a safe haven could accelerate as trust in traditional fiat systems weakens.
#Powell #market #Web3


$BTC