๐ Whatโs Actually Going On Between Trump, Powell, and Crypto?
Right now, there's a lot of noise in the markets โ and at the center of it is a power struggle between former President Donald Trump and Federal Reserve Chair Jerome Powell.
๐ฃ๏ธ Trumpโs Side:
Trump is publicly attacking Powell, saying interest rates are too high and calling for immediate rate cuts. Heโs also raising questions about the cost of Fed renovations โ possibly looking for a way to push Powell out if he returns to office.
Trump is also openly pro-crypto, promising looser regulations and support for Bitcoin mining and innovation. Thatโs fueling hope among crypto traders that a future Trump administration could make the U.S. more crypto-friendly.
๐ Powellโs Side:
Powell is staying firm โ heโs saying the Fed follows data, not politics. On July 16 at the CPI Summit, he made it clear:
โWe are not political. We follow the data.โ
The law also backs Powell โ a President canโt fire the Fed Chair without a legal reason. So for now, he stays in control of interest rate policy.
๐ The Crypto Reaction:
Crypto markets are caught in the middle. On one hand, theyโre reacting to hopes of lower rates and pro-crypto policies if Trump returns.
On the other hand, hot inflation data (CPI) means the Fed might keep rates higher for longer โ which slows down liquidity and weighs on risk assets like Bitcoin and altcoins.
Still, Bitcoin has held above $115K, and many altcoins are bouncing. That shows confidence โ not in politics, but in cryptoโs long-term potential.
