President Donald Trump has rekindled discussions on the replacement of the president of the Federal Reserve (Fed), Jerome Powell. This sparked waves in traditional and cryptographic markets, with Bitcoin due to recovering $ 105,000.
The implications are significant, extending beyond monetary policy to the trajectory of bitcoin, altcoins and the feeling of macro-risk in the world.
Trump’s Fed Fed Fed Chair Shakes the markets
On June 6, Trump said that his choice for the next president of the Fed “comes out very soon”, even if Powell’s mandate officially ended until May 2026.
This decision would come back to a political earthquake in monetary policy circles, Trump preparing to install a president of the Fed wave “Phantom”.
Two months ago, when Trump suggested for the first time to dismiss Powell, the US dollar index (DXY) fell, sending an arrow bitcoin. As Bitcoin has reported, Bitcoin has rallied hard while the market at the price of monetary policy, more loose and declining confidence in the independence of the Fed.
When Trump fell back at the end of April, Bitcoin has briefly corrected, illustrating how the cryptographic assets are now linked to the credibility and the policy of the Treasury.
“I have no intention of dismissing him … I would like to see him being a little more active in terms of his idea of reducing interest rates,” REUTERS reported, citing Trump saying to journalists from the oval office on Tuesday.
Now that Powell’s replacement story is back on the table, Bitcoin again flashes volatility.
“It could shake the markets.
Can Trump even pull Powell?
It should be noted that legally, Trump cannot say Powell as president of the Fed unless he explores legal gaps. The Federal Reserve Act only allows an insurance chair to be removed “for good reason”, which has historically meant ethical violations or a serious fault.
However, Trump could appoint Powell’s successor before the 2026 deadline, a strategy that Scott Bessent by Key Square Capital suggested.
“… The candidate should wait to preside over the powerful Federal Federal Committee of Open Market of the Central Bank, which establishes one of the most important interest rates in the country … The advice, the predictions of this person and the potential criticisms of the Fed actions would weigh heavily on the financial markets,” said Jon Herold.
Bessent is also the American secretary of the Treasury. Trump would have explored the opportunity to dismiss the president of the Fed.
Despite legal shortcomings, some say that withdrawing it without reason would trigger legal and market chaos.
What a new Fed chair would mean for Bitcoin and Altcoins
Geoff Kendrick, manager of digital asset research at Standard Charterd, recently told Beincryptto that Bitcoin is no longer just coverage against inflation. Rather, it is a coverage against traditional finance (tradfi) and the risk of cash.
“The threat of withdrawing the president of the American federal reserve Jerome Powell falls at risk of cash – so the coverage is on,” Kendrick told Beincryptto.
With increased monetary uncertainty, Bitcoin is increasingly considered a decentralized alternative to Fiat controlled systems. This is particularly true in times of political interference.
“If” too late “to the Fed reduced, we considerably reduce interest rates, long and short, on the coming debt. Biden went in the short term. There is almost no more inflation (more), but if it were to come back, increase the “rate” to counter. Very simple !!! Trump wrote on Truth Social.
Trump believes that the United States would be better economically without Powell, feelings in increasing debt. In this context, experts say that bitcoin presents itself as a life raft. Based on these perspectives, the crypto pioneer makes a game to recover the threshold of $ 105,000.
Meanwhile, the implications extend beyond Bitcoin. Altcoins, which have lagged behind in 2025 in the middle of the quantitative tightening (QT) and expectations of a mute rate, could finally obtain the green light for a rally.
“This is the most important news for holders of Altcoin. The main reason behind the Altes-Season delay is the QT program and less rate reductions. [Trump’s] requirements. Alts-Season arrives, ”wrote the abbot case analyst.
A Fed president aligned by Trump would likely argue aggressive rate drops, loosen the financial conditions and allow the type of liquidity that feeds the markets of cryptographic bulls. However, the potential drawbacks remain.
“This day will be the Black Swan event in the world in case,” warned World Finance, a popular account on X, warned.
This decision could inaugurate a new bull or trigger systemic shocks.
Non-liability clause
In membership of the Trust project guidelines, Beincrypto has embarked on transparent impartial reports. This press article aims to provide precise and timely information. However, readers are invited to check the facts independently and consult a professional before making decisions according to this content. Please note that our terms and conditions, our privacy policy and our non-responsibility clauses have been updated.
