Bitcoin price breakout speculation is rising as political tensions surrounding the Federal Reserve stir up market expectations
.
Former President Donald Trump has publicly criticized Fed Chair Jerome Powell and is reportedly exploring whether he can replace him. While legally he lacks the direct authority to do so, the political noise is making waves in the markets.
🔄 Market Impact: Lower Rates, Weaker Dollar, Stronger Bitcoin?
When markets start pricing in lower future interest rates, the U.S. dollar tends to weaken. This often boosts demand for alternative assets, especially Bitcoin.
As of Saturday, Bitcoin was trading at $85,232.30, hovering between support at $84,000 and resistance near $85,000. This is about a 14% increase from its monthly low.
🧠 Trump vs Powell: Why It Matters
Under U.S. law, the president can’t fire the Fed chair without cause—usually interpreted as misconduct. Still, Trump has never been shy about pushing boundaries. His recent comments reflect growing dissatisfaction with Powell’s reluctance to cut interest rates.
“If we had a Fed chairman who understood what he was doing, interest rates would be coming down,” Trump told reporters.
Kevin Hassett, the former director of the National Economic Council, confirmed that Trump is looking into legal avenues to replace Powell. Reports also suggest former Fed governor and crypto investor Kevin Warsh could be a candidate to take the reins.
📉 Central Bank Independence and Bitcoin
Analysts believe removing Powell without cause could shake investor confidence in the central bank’s independence.
A move like this could weaken the U.S. dollar—just as seen in countries like Turkey and Zimbabwe, where central banks lack autonomy. For Bitcoin bulls, this signals potential for major upside.
📊 Technical Analysis: Bullish Pattern in Play
On the 4-hour chart, Bitcoin has been trading in a narrow range. It’s currently positioned just above the 50-period moving average.
More notably, BTC has formed a bullish pennant, a classic pattern that typically precedes strong upward moves. As the price approaches the triangle’s tip, a breakout to the upside is likely.
The next resistance level to watch? $88,585—Bitcoin’s peak in April.
🔚 Final Thoughts
Whether or not Trump replaces Powell, the conversation itself is enough to influence markets. If traders start betting on future rate cuts, Bitcoin could benefit from rising interest and a declining dollar.
For now, all eyes are on the charts and the White House.
