Former U.S. President Donald Trump has once again ignited financial market debates, this time by suggesting he may replace Federal Reserve Chair Jerome Powell if re-elected. This development is making waves not only in traditional markets but also in the world of cryptocurrency, especially as Bitcoin edges toward the $105,000 mark.
Trump’s Push to Replace Powell Raises Policy Questions
Although Powell’s term as Fed Chair officially runs until 2026, Trump has recently hinted at nominating a successor early, should he return to office. Legally, a U.S. president cannot directly fire a Federal Reserve Chair without cause. However, Trump could sidestep this by appointing a new chair once Powell’s term as a Fed governor expires in 2028—or by pressuring Powell to resign early.
This unexpected political move has stirred concern among central banking circles, as a leadership change could disrupt the Fed’s current monetary policy direction. Trump has historically criticized Powell for being too slow with interest rate cuts, and experts believe a Trump-aligned chair would likely adopt a much more aggressive stance on rate reductions.
Bitcoin Nears $105,000 Amid Market Uncertainty
Bitcoin prices have surged in recent days, approaching the $105,000 mark. Market analysts attribute part of this rise to expectations that a new Fed chair under Trump could push for looser monetary policy. Lower interest rates typically weaken the U.S. dollar, which can make cryptocurrencies like Bitcoin more attractive to investors as a hedge against inflation and fiat currency risk.
However, the possibility of sudden shifts in the Federal Reserve’s leadership has also injected volatility into the markets. Traders remain cautious, as any disruption to the Fed’s credibility could ripple through global equities, bonds, and crypto assets alike.
This uncertainty doesn’t just affect Bitcoin—it impacts the broader altcoin market as well. Investors looking for yield and safety may continue to flock to digital assets if they perceive the Fed’s policy as overly dovish or politically influenced.
Final Thoughts
Trump’s potential move to replace Jerome Powell before his term ends is more than just political drama—it’s a decision that could reshape U.S. monetary policy and have a lasting impact on global financial markets. As Bitcoin flirts with the $105,000 threshold, all eyes are on how the Fed’s direction may shift in the coming months. Whether you’re a crypto investor or a traditional market participant, staying informed on this evolving situation is critical.
