16.07.2025 06:42
Representative Anna Paulina Luna's succinct "Confirmed" tweet ignited a firestorm in the cryptocurrency markets Wednesday morning. This single word, confirming the imminent firing of Federal Reserve Chair Jerome Powell, sent shockwaves through trading circles. The speed with which the news spread was remarkable; within minutes, prediction markets reflected a significant surge in the likelihood of Powell's dismissal, reaching a yearly high of 26 percent – a ten-point jump in just 24 hours. A White House-led search for a replacement is already underway.
Treasury Secretary Scott Bessent publicly acknowledged the commencement of a formal process to identify Powell's successor during a Bloomberg interview. He confirmed a robust pool of potential candidates, both internal and external to the Federal Reserve. President Donald Trump further solidified these claims, reiterating his previous statement that the extensive renovations at the Federal Reserve were grounds for dismissal. These renovations, a $2.5 billion overhaul of the Eccles Building that significantly exceeded budget, have become the focal point of the legal argument for Powell's removal, with Trump's allies citing "inefficiency" and "neglect of duty." Powell himself has requested a renewed investigation into the project by the Fed's inspector general. Adding to the swirling speculation, Federal Housing Finance Agency head Bill Pulte, a long-standing Powell critic, corroborated the rumors on X, citing a bipartisan source indicating Powell's potential resignation.
Interestingly, Bitcoin and cryptocurrency prices haven't yet reacted significantly to this dramatic development. Although BTC briefly touched $123,000 on Monday, it remains slightly below its all-time high. The market appears to be adopting a wait-and-see approach. Yet, the long-term consequences for the crypto market could be transformative. Macro commentator Julian Figueroa expressed a strongly bullish outlook, arguing that the perceived collapse of the Federal Reserve's independence represents a potent catalyst for Bitcoin, potentially the strongest in five years.
Veteran trader Byzantine General expressed a more nuanced perspective, acknowledging Powell's past effectiveness while concurrently suggesting that a replacement might adopt a more accommodative monetary policy, potentially leading to lower interest rates, a positive indicator for cryptocurrencies. A potential replacement for Powell, willing to implement the three-percentage-point rate cut President Trump demands, could trigger a significant shift in Federal Reserve policy. This could involve halting the balance-sheet runoff simultaneously with increased government fiscal stimulus. Such a synchronized pivot away from quantitative tightening could dramatically increase market liquidity, mirroring the conditions that fueled the crypto market's explosive growth in 2020-2021 and setting the stage for another significant bull run. At the time of writing, the total cryptocurrency market capitalization stands at $3.68 trillion. This information is sourced from internet resources.