Bitcoin Poised for Bullish Surge Amid Fed Chair Speculation
Bitcoin could see a notable price boost if President Trump replaces Fed Chair Jerome Powell. Trump has expressed dissatisfaction with Powell, hinting at a possible replacement. This speculation could weaken the dollar, benefiting Bitcoin.
Trump’s dissatisfaction stems from Powell’s reluctance to lower interest rates. Lower rates typically weaken the dollar, making option assets like Bitcoin more attractive.Currently, Bitcoin trades at $85,232.30, up 14% from its monthly low. The coin is hovering between $84,000 adn $85,000, as seen on CoinGecko. If markets anticipate lower interest rates, it could drive Bitcoin higher.Though, the president can’t fire Powell without cause. The Fed’s independence protects it from political pressure, ensuring economic decisions remain unbiased.
Trump’s comments suggest he wants a Fed chair who will cut rates. If rates drop, investors might shift to Bitcoin. But Powell has resisted rate cuts.
Bitcoin’s price action supports this bullish outlook. It’s currently forming a bullish pennant, a pattern that often precedes a strong price surge. If this pattern holds, Bitcoin could reach $88,585, its April high.
However, the Fed’s independence is crucial. Trump’s threats to replace Powell could undermine this independence,potentially weakening the dollar and boosting Bitcoin. But legally, Trump can only remove Powell for misconduct. Any attempt without cause could face legal challenges.
Experts warn that eroding the Fed’s independence could harm the dollar’s value, benefiting bitcoin. Historically, currencies from central banks lacking independence, like the Turkish lira and Zimbabwe dollar, have underperformed.This scenario could drive more investors to Bitcoin as a safer alternative.
for now, Bitcoin remains in a tight trading range. But if the Fed’s autonomy is compromised, it could lead to a significant Bitcoin rally. Investors shoudl watch for any changes in Fed leadership and interest rate policies.
