Bitcoin Wavers After Trump Says He's 'Not Planning' to Fire Fed Chair
Experts say that testing the Fed’s independence could be bad for stocks and bonds, but a boon for assets like Bitcoin.
Trump–Powell Tension Sparks Crypto Market Volatility
Trump’s Criticism of Fed Chair Fuels Market Moves
President Donald Trump’s harsh rhetoric toward Federal Reserve Chair Jerome Powell stirred volatility in the crypto market. Bitcoin briefly spiked to $119,500 before dipping slightly, though it remained up 2% on the day.
Conflicting Signals on Powell’s Future
Despite criticizing Powell’s performance—calling it “lousy”—Trump publicly denied plans to fire him. However, Bloomberg and The New York Times reported Trump privately showed lawmakers a draft termination letter, suggesting he may act soon.
Potential Fallout of Firing Powell
Removing Powell before his term ends in eight months would be unprecedented and could erode market confidence, shaking stocks and bonds. Experts warn it would undermine trust in U.S. economic institutions.
Bitcoin as a Beneficiary
Some analysts suggest that challenges to the Fed’s independence may boost Bitcoin and other alternative assets like gold, which are viewed as hedges against economic instability.
Political Pressure and Fed Renovation Criticism
Trump has also criticized a $2.5 billion Fed headquarters renovation and accused Powell of partisan policymaking—adding fuel to speculation about an impending dismissal.
Broader Pattern of Disruption
This episode echoes Trump’s earlier aggressive tactics on trade, where public statements often clashed with internal policy moves, creating uncertainty in global markets.
