Bitcoin has not yet priced in future changes in the Fed's monetary policy, which depend on whom U.S. President Trump chooses to replace Chairman Jerome Powell. This was stated by economist Alex Krüger.
Bitcoin traders see a potential rate cut #ФРС in September as a factor that would make conditions for Bitcoin more attractive. A successful choice of a new Fed chair could further stimulate price growth.
Markets expect a rate cut in September
«I have a high degree of confidence that this cycle is not over yet, because I expect changes at the Fed that will lead to significantly looser monetary policy,» Krüger wrote on social media X.
«This will start to be priced in as soon as Trump announces his candidate to replace Powell,» he added. Powell's term expires in May 2026, and Trump has already begun to put forward names of potential candidates for his replacement.
The Fed influences Bitcoin through its monetary policy, which determines interest rates, overall market sentiment, and investors' willingness to take risks or play it safe.
The Trump administration is considering 11 candidates
According to a CNBC report, the Trump administration is considering 11 candidates to replace Powell.
The latest names added to the list include Jefferies market analyst David Zervos, BlackRock's Chief Investment Officer Rick Rieder, and former Fed governor Larry Lindsey.
Tense relations between Trump and Powell
Trump's relationship with Powell has remained tense since the president's inauguration in January. Trump has repeatedly criticized the Fed's unwillingness to lower rates and has publicly spoken out against Powell.
On April 17, Trump stated: "Powell needs to be fired as soon as possible!" Florida Senator Rick Scott agreed with the president, saying: "It's time for new leadership at the Federal Reserve System."
Krüger believes that the Fed will cut rates at its meeting on September 17. This view is widely shared by the market: 83.9% of participants expect a rate cut, according to the CME FedWatch Tool.
