Trump Hints at Fed Shake-Up—Crypto Markets Poised for Major Price Shift$
Bitcoin has been trading sideways despite hitting a new all-time high in May, as uncertainty around U.S. monetary policy continues to weigh on investor sentiment. Now, former President Donald Trump has hinted at a major Federal Reserve decision that could jolt crypto markets.
Speaking from Air Force One, Trump confirmed he’ll soon announce his pick for the next Fed chair. He reiterated his long-standing criticism of current chair Jerome Powell, urging immediate rate cuts to support the economy. “A good Fed chairman would cut rates now and raise them later if needed,” Trump said.
The frontrunner for the role is former Fed governor Kevin Warsh, who recently proposed that shrinking the Fed’s balance sheet could allow for lower interest rates without fueling inflation. Markets are closely watching, especially platforms like Polymarket, where Warsh is gaining momentum.
Bitcoin analysts believe that any move toward rate cuts would be bullish for risk assets. Bitfinex analysts said, “If bitcoin holds above $105,000, we may see a push toward the $120,000–$125,000 range in June.”
Meanwhile, concerns over a weakening U.S. dollar are being echoed by Elon Musk, adding to the growing narrative favoring alternative assets like crypto. Trump’s new round of global tariffs is also expected to increase inflation pressures—ironically making the Fed more cautious about cutting rates.
Although Trump once explored the possibility of firing Powell, he has since confirmed he won’t act before Powell’s term ends. Still, pressure is building on the Fed as inflation data and labor market strength complicate policy decisions.
With uncertainty rising, the crypto market remains on high alert—ready to react if the Fed pivots or if Trump reshapes the monetary landscape.