Bitcoin rises after Trump appoints Bitcoin-supporting economist to the Fed

Bitcoin has rebounded, surpassing the $117,500 mark, after President Donald Trump unexpectedly appointed economist Stephen Miran to the Board of Governors of the Federal Reserve (#Fed ). Miran is known as a Bitcoin supporter.

Looser policies and market impact

According to Greg Magadini, Director of Derivatives at Amberdata, Miran's appointment is interpreted by traders as a signal that the Fed's monetary policy will be more accommodative in the future, aligning with the Trump administration's desires. The market's positive reaction, with price #bitcoin increasing by 2%, indicates that investors believe this policy shift will benefit digital assets.

Risks and long-term outlook

However, Magadini also warns of potential risks. If the Fed loses its independence and ability to combat inflation, this could create a situation similar to the 1970s, when inflation surged significantly. Nevertheless, with inflation still persistent and demand for safe-haven assets like gold increasing, some analysts believe that Bitcoin may benefit from these inflation concerns.

Although the cryptocurrency market remains small compared to traditional assets, the appointment of a Bitcoin supporter to a key position at the Fed is a positive sign of increasing acceptance among politicians for digital assets, creating a more favorable environment for the development of this industry.

source: #Decrypt