Donald Trump's threat to remove Federal Reserve Chairman Jerome Powell could have several effects on the world of cryptocurrencies, both in the short and long term:
1. Increased volatility in financial markets 📍
Cryptocurrencies like Bitcoin and Ethereum often benefit from economic or political uncertainty.
If investors perceive that the independence of the Federal Reserve is at risk, they may flee traditional assets (such as stocks or bonds) and seek refuge in cryptocurrencies, considered by many as a decentralized alternative.
2. Speculation about rate cuts📍
Trump pressures Powell for not lowering rates quickly. If the market believes that a future president could intervene directly in monetary policy:
Lower rates and inflation could be anticipated, which has historically driven demand for scarce assets like Bitcoin.
3. Regulatory risk📍
Trump has also shown variable positions on cryptocurrencies in the past. A change in the Fed under his influence could lead to a looser monetary policy, but also to stricter regulations if he sees cryptocurrencies as a threat to the dollar.
4. Credibility of the dollar at stake📍
If confidence in the Federal Reserve weakens, this could affect the perception of the dollar as the world's reserve currency, something that indirectly benefits cryptocurrencies as a store of value.
