🚨Trump vs. Powell: How the Fed Feud Could Reshape Crypto Markets🚨
The escalating battle between President Trump and Fed Chair Jerome Powell is sending shockwaves through financial markets—and crypto is caught in the crossfire. Trump’s repeated threats to fire Powell over rate-cut delays have sparked fears of a market crash, with Senator Elizabeth Warren warning such a move would destabilize U.S. markets . Meanwhile, Powell has pushed back, citing Trump’s aggressive tariffs as a stagflation risk—higher inflation paired with slower growth—which could force the Fed to keep rates elevated .
For crypto, this clash presents both danger and opportunity:
1. Short-Term Volatility: Bitcoin briefly plunged below $75K as traders feared political interference in Fed policy, but rebounded above $85K as investors weighed crypto’s potential as a hedge against traditional market chaos .
2. Decoupling Potential: If Trump fires Powell, crypto could emerge as a "safe haven" from centralized financial instability, mirroring gold’s surge to record highs amid the turmoil .
3. Institutional Moves: Derivatives data shows traders hedging bets, with XRP’s open interest dropping 23% as macro uncertainty grows .
The Bigger Picture
- A Powell ouster could trigger a "black swan" event, crashing stocks but potentially fueling a Bitcoin rally past $110K as faith in traditional systems erodes .
- Conversely, prolonged stagflation fears may keep crypto correlated with risk assets in the near term .
Bottom Line: This fight isn’t just about rates—it’s about market trust. Crypto’s next move hinges on whether it can break free from traditional finance’s turbulence or get dragged down with it.
