The markets are buzzing as Donald Trump hints at replacing Fed Chair Jerome Powell, shaking investor confidence in the U.S. central bank. While Powell’s term doesn’t end until May 2026, Trump’s recent comments are already sending ripples through both traditional and crypto markets. Bitcoin is eyeing a return to the $105,000 mark, fueled by speculation over looser monetary policy and increased Treasury risk.
Trump’s Fed Chair Plans Stir Market Volatility
On June 6, Trump stated that he would soon announce his pick for the next Fed Chair. Though Powell’s current term still has years left, the possibility of a “Chair-in-waiting” is enough to shake market stability.
This isn’t the first time Trump’s stance on Powell has triggered a reaction. Back in April, when Trump softened his tone, Bitcoin briefly corrected. But now, with talk of replacement back in play, crypto assets are showing renewed volatility.
Can Trump Legally Remove Powell?
Technically, Trump can’t fire Powell outright—the Federal Reserve Act only allows removal “for cause.” That usually means misconduct, not policy disagreements.
However, Trump could nominate a successor early, paving the way for a hand-picked candidate to influence the central bank from the sidelines. According to Key Square Capital’s Scott Bessent, that nominee could wield significant market influence—even before officially taking over.
Why It Matters for Bitcoin and Altcoins
Trump’s pressure on the Fed adds a new layer of Treasury risk, something Bitcoin is increasingly used to hedge against, according to Geoff Kendrick of Standard Chartered.
“Bitcoin is no longer just a hedge against inflation—it’s a hedge against TradFi and policy chaos,” Kendrick explained.
Trump’s economic posts on Truth Social further drive this narrative. He blames Powell for high borrowing costs and insists that the U.S. could benefit from sharp interest rate cuts. Such rhetoric only fuels the narrative that Bitcoin is a safer, decentralized alternative.
What a Trump-Aligned Fed Could Trigger
Should Trump succeed in replacing Powell, the impact could be massive. Experts believe a Trump-aligned Fed Chair would likely slash rates, spurring liquidity and potentially launching the next crypto bull run.
This policy shift could finally unlock momentum for altcoins, which have lagged behind Bitcoin in 2025.
A Risky Opportunity?
While the crypto market could benefit from easier monetary conditions, not everyone is optimistic. The popular finance account “World of Finance” called the move a potential black swan event, warning it could bring global financial shocks.
Regardless of how it unfolds, Trump’s Fed ambitions have reawakened crypto volatility. And with Bitcoin approaching $105,000 again, it’s clear investors are watching every political development closely.
