US President Donald Trump has rekindled debate over replacing Federal Reserve Chairman Jerome Powell. This has blown waves across traditional and crypto markets, and Bitcoin is poised to regain $105,000.
The meaning is important, expanding globally beyond monetary policy into the trajectory of Bitcoin, altcoin and macro-risk sentiment.
Trump’s Phantom Fed Chair Plan shakes the market
On June 6, Trump said the next Fed chair pick “will come out soon” despite Powell’s term not officially ending until May 2026.
The move amounts to a political earthquake in the monetary policy world, with Trump preparing to set up a “phantom” Fed chair.
Two months ago, when Trump first proposed firing Powell, the US Dollar Index (DXY) rolled over and Bitcoin spiked. As reported by Beincrypto, Bitcoin was repetitively repeated as the market was priced with a more lax monetary policy and a decline in trust in the Fed’s independence.
When Trump retreated in late April, Bitcoin was temporarily revised, showing how closely Crypto Assets is tied to current reliability and financial policy.
“I’m not going to fire him… I hope he’s a little more aggressive in terms of his idea of ​​lowering interest rates,” Reuters reported citing that he told reporters in his oval office on Tuesday.
Bitcoin is again flashing volatile as the Powell exchange story returns to the table.
“This could shake the market. It could cause a crypto bull run or a big drop,” said Rananjay Singh, founder of TodayCrypto.
Can Trump even fire Powell?
Legally, it is worth noting that Trump cannot win a full fire Powell as Fed chair unless he explores a legal loophole. The Federal Reserve Act allows the removal of sitting Fed chairs “for a cause” that had implied an ethical violation or serious misconduct.
But Trump was able to nominate Powell’s successor well before the 2026 deadline, suggesting the strategy of the main square capital.
“… Candidates must wait for the chairman of the central bank’s powerful federal open market committee, which sets one of the most important interest rates in the country. The person’s guidance, forecasts, and potential criticism of the Fed’s actions will be heavier in the financial market,” explained John Herold.
Bescent is also the US Secretary of the Treasury. Trump is reportedly investigating whether he will fire the Fed’s chair.
Some say that eliminating him without a cause, despite the legal loophole, will cause legal and market disruption.
What does the new Fed chair mean for Bitcoin and altcoin?
Geoff Kendrick, head of digital assets research at Standard Chartered, recently told Beincrypto that Bitcoin is no longer a hedge against inflation. Rather, it is now a hedge against traditional finance (Tradfi) and the Ministry of Finance’s risk.
“The threat of US Federal Reserve Chairman Jerome Powell at risk for the Treasury Department is showing hedges,” Kendrick told Beincrypto.
Due to increasing financial uncertainty, Bitcoin is considered a decentralized alternative to the Fiat control system. This is especially true in times of political interference.
“If the Fed’s ‘too late’ is reduced, we will significantly reduce long-term interest rates over the long term. Biden went almost in the short term. Once inflation is effectively (already) back, we need to counter the “interest rates.” It’s very simple. Trump wrote about the true society.
Trump feels Powell will be economically better without Powell amid rising debt. Against this backdrop, experts say Bitcoin will present it as a life raft. Based on this outlook, Pioneer Crypto is playing to regain the $105,000 threshold.
On the other hand, this meaning extends beyond Bitcoin. Lagging in 2025 amid expectations of quantitative toning (QT) and calm rate cuts, Altcoins may ultimately get a green light for the rally.
“This is the most important news for Altcoin owners. The main reason behind the delays in AltSeason is the reduction in QT programs and rate reductions. However, this could change soon. The new Fed Chairman will undoubtedly meet (Trump’s) demands.
The Fed’s chairman, alongside Trump, will advocate for aggressive interest rate cuts, loosen financial position and allow for the kind of liquidity that will drive the crypto bull market. Still, potential drawbacks remain.
“That day will be a global Black Swan event if it happens,” warned X’s popular account World of Finance.
This move could lead to a new bull run or cause a systematic shock.
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