Trump vs Powell: Why It Shakes Up Crypto ➡️ EXPLAINED CLEARLY !!
1. Powell = High Rates = Crypto Pain
Fed Chair Jerome Powell likes keeping interest rates high to fight inflation. That makes the dollar strong, but risky assets like crypto? Not so hot. Traders panic, and prices drop.
2. Trump Wants Lower Rates = More Liquidity
Trump doesn’t like high rates. He’s pushed for cuts to boost the economy. If he wins again, people expect looser policy which usually means more money flowing into markets, including crypto.
3. Tension = Wild Swings
When Trump criticizes Powell or talks about firing him, markets react fast. And crypto? It moves fastest. Sentiment shifts = price swings.
4. Trump’s Crypto Vibe Is Changing
He used to bash crypto, but now he’s warming up. Especially to NFTs. If he backs crypto-friendly laws, the market could go full bull mode.
The real question is: does it directly affect crypto market?
Here's the answer
It doesn’t directly affect crypto fundamentals - it affects market sentiment.
Breakdown:
What it does:
Influences investor behavior through:
Interest rate expectations
Risk appetite
Dollar strength/weakness
Causes capital to flow in or out of speculative markets like crypto.
Triggers short-term volatility, especially in Bitcoin and altcoins.
I hope you all understood .