Trump angrily criticized Powell and demanded his resignation! Turning around to support Bitcoin, the market erupted: is something big about to happen?
In the past couple of days, both the U.S. political scene and the cryptocurrency world have exploded! Former President Trump is simultaneously demanding that Federal Reserve Chairman Powell 'resign immediately' while vocally supporting Bitcoin, even signing a 'milestone cryptocurrency legislation' that directly positions the U.S. as the 'world's cryptocurrency capital.' This move has left even the onlookers baffled: what game is Trump really playing?
Act One: Trump vs. Powell, is the Federal Reserve about to change?
Recently, Trump suddenly retweeted an article on social media, directly attacking Federal Reserve Chairman Powell: 'Mr. Late should resign immediately!' This fiery statement instantly ignited public opinion. Why? Because it was related to the renovation issues of the Federal Reserve headquarters—a routine renovation that turned out to be over budget by $700 million and involved 'political misguidance.'
This isn't the first time this has happened. The feud between Trump and Powell dates back to 2018. That year, Trump personally nominated Powell as the Federal Reserve Chairman, but soon regretted it. Why? Because Powell didn't follow his script! Trump wanted to stimulate the economy with low interest rates, but Powell kept raising rates, infuriating Trump who called him the 'biggest threat.' In 2025, Trump returned, using the renovation controversy to bring their conflict to the forefront.
However, legal experts have dampened the excitement: according to the Supreme Court ruling and the Federal Reserve Act, the president does not have the authority to arbitrarily dismiss Federal Reserve officials. Powell's term lasts until 2026 unless he actually commits a crime. Upon seeing the market tremble at this news (Dow down 0.15%, gold up 1.3%), Trump quickly changed his tune to say 'the likelihood of dismissal is extremely low,' but left a caveat—'if fraud is found, that's another story.'
Act Two: Bitcoin suddenly named, is Trump trying to create a 'crypto empire'?
After criticizing Powell, Trump turned around and did something significant—on July 19, he signed a stablecoin bill that directly establishes a federal 'strategic Bitcoin reserve' and a 'national digital asset reserve.' What does this mean? In simple terms, the U.S. is starting to stockpile Bitcoin and aims to become the global leader in cryptocurrency!
As soon as the news broke, the cryptocurrency world exploded. While Bitcoin's price dipped slightly that day ($117,841), market sentiment was clearly ignited. It's worth noting that Trump has previously criticized Bitcoin and was even called out for 'slicing the vegetables' when Bitcoin prices plummeted in 2024. This sudden 180-degree turn has led some to joke: 'Has Trump been co-opted by the crypto community?'
However, experts warn: government intervention in Bitcoin reserves could violate the core principle of 'decentralization.' If Bitcoin's freedom characteristics are damaged, the market could panic at any moment. But Trump is unconcerned; all he sees is 'America First'—low interest rates can save on national debt interest (saving $175 billion annually under $35 trillion debt) and support campaign funding.
Act Three: Market reactions are polarized, where do we go from here?
Right now, the Bitcoin market feels a bit 'quiet yet turbulent.' Technical indicators show that the MACD histogram is getting shorter, bullish forces are weakening, KDJ is neutral, and prices are hovering around $117,000. Some analysts believe this might be the calm before the storm—once the Federal Reserve's policy shows any signs of change, or if Trump drops another bombshell, Bitcoin could skyrocket to $120,000 in no time.
Meanwhile, Trump criticizes Powell for 'politicizing the Federal Reserve' while he himself is interfering with monetary policy. This 'double standard' operation has been criticized by Democrats as 'nonsense,' and economists warn: 'If policy disagreements can lead to the dismissal of the central bank chairman, the Federal Reserve's independence will be a mere facade!'
Conclusion: What is Trump's grand strategy?
In short, Trump's actions are a calculated political move. With the 2025 elections approaching, he needs topics and support. Criticizing Powell can win over voters who are unhappy with high inflation; supporting Bitcoin can attract young voters and those in the tech sector. As for the independence of the Federal Reserve? In Trump's eyes, what could be more important than 'America First'?
However, the most exciting part of this drama may be its global impact. If U.S. dollar hegemony is truly weakened, the internationalization of the Renminbi and the BRICS nations' 'de-dollarization' plans might just hit the accelerator. And Bitcoin, once considered a 'speculative asset,' could really be elevated to the level of a 'national strategy' by Trump.
Is Trump's outburst of 'attacking Powell + supporting Bitcoin' just a political stunt or does he really have foresight? The market is watching, voters are judging, and the global financial system may be undergoing a once-in-a-century transformation. We, the onlookers, can just sit back and see how this drama unfolds!
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