Crypto Expects ‘Serious’ Price Shock
Donald Trump’s verbal onslaught against the Federal Reserve and its chair Jerome Powell has sent shockwaves through bitcoin, crypto, and stock markets this year, especially with Trump now wielding a surprise, secret weapon. The bitcoin price has skyrocketed in tandem with gold, reaching an unprecedented peak last month, which has propelled the total crypto market cap to exceed $4 trillion as the crypto “floodgates are starting to open.”
In a striking development, Tesla billionaire Elon Musk has issued a $37 trillion warning, while a close ally of Trump has forecasted that the president will “take the Fed over.” This move could potentially disrupt the global financial order and lead to chaos in the bitcoin price, as well as the crypto and stock markets. Donald Trump has made headlines once again, this time with his comments regarding the Federal Reserve and its chair, Jerome Powell. As discussions around monetary policy continue, the impact on bitcoin and the broader crypto market remains a hot topic. Observers are keenly watching how these developments might influence the bitcoin price and the overall sentiment in the crypto space. Federal Reserve chair Jerome Powell has faced intense criticism from President Donald Trump, causing significant turmoil in the bitcoin price, as well as the crypto and stock markets.
“Trump was furious at Powell in the first term for jacking up rates for no particular reason,” Larry Kudlow, a close ally of Trump who served as a top adviser in the White House during the president’s first term. “It’s somewhat of a melancholic narrative. If it weren’t such a serious matter, it might come off as somewhat humorous; individuals shouting at one another. However, the key takeaway is: President Trump is set to take control of the Fed, and rightfully so. The tension between Trump and the Fed has been escalating for years, sparked by allegations of political bias that emerged when Powell mistakenly labeled post-Covid lockdown inflation as “transitory,” hesitating to raise interest rates in reaction to climbing prices. The situation intensified when Powell caught markets off guard with a 50 basis point inflation increase in September last year, perceived by some as a boon for Trump’s Democratic Party opponent, Kamala Harris. Earlier this year, Trump hinted at the possibility of removing Powell before his term concludes next year, causing jitters in the markets concerned about the potential erosion of the Federal Reserve’s political independence. However, the odds on Trump “removing” Powell on the crypto-powered prediction platform have decreased to approximately 5% from a high of 20% in July.
Since then, Trump has attempted to oust Fed governor Lisa Cook and appointed Stephen Miran, chair of the Council of Economic Advisers and a bitcoin advocate, as a temporary Fed governor. Bitcoin continues to capture attention as its price fluctuates in response to various factors, including the Federal Reserve’s monetary policy. With Jerome Powell, the Fed’s decisions are closely monitored by crypto enthusiasts and investors alike. Meanwhile, Donald Trump’s comments on the market add another layer of intrigue, as analysts examine the latest charts for insights into future movements. The bitcoin price has surged this year, skyrocketing as President Donald Trump crafts a Federal Reserve dilemma for Chair Jerome Powell. “What investors seem to be missing is President Trump’s ongoing interference in the operations, which poses a risk to its autonomy. This could end up being a far more serious issue,” said David Morrison.
This week, the Fed is anticipated to lower interest rates, reacting to a decelerating labor market that has overshadowed the threat of inflationary price pressures. Numerous optimistic bitcoin traders and investors anticipate that the bitcoin price will surge at an accelerated pace once the Fed initiates interest rate cuts, a move that facilitates a quicker flow of cash throughout the economy. The bitcoin price and the broader crypto market have experienced a notable surge over the past week, with bitcoin rising by 5% as traders gain confidence in what is anticipated to be a dovish pivot from the Fed.
