Key Takeaways
- Bitcoin surged to $93,136 after Trump confirmed Jerome Powell will remain Fed Chair.
- Speculation around Powell's removal had fueled volatility, with Trump pushing for rate cuts.
- Bitcoin is increasingly viewed as a hedge amid political and financial instability.
Bitcoin price action
Bitcoin (BTC) surged to $93,136 early Wednesday, gaining nearly 6% in 24 hours, following President Trump’s announcement that he will not remove Federal Reserve Chair Jerome Powell.
Political backdrop
The rise came after weeks of speculation fueled by reports that the Trump administration was interviewing potential replacements amid disagreements over interest rate policies.
Trump has pushed for rate cuts to cushion the economy from the effects of his trade tariffs, while Powell has advocated a more cautious approach.
Trump’s public statements
Trump wrote on Truth Social:
The Fed would be much better off cutting rates as US Tariffs start to transition (ease!) their way into the economy. Do the right thing
Despite tensions, Trump told reporters in the Oval Office on Tuesday:
I have no intention of firing him…I would like to see him be a little more active in terms of his idea to lower interest rates.
Market implications
The reassurance sent Bitcoin soaring, reflecting its growing correlation with macroeconomic developments.
Market volatility driven by the Trump administration’s economic policies has increasingly highlighted Bitcoin’s role as a hedge.
Industry reaction
BitMEX founder Arthur Hayes captured the market mood, posting:
Trump says he wants to fire JAYPOW – dollar dips, BTC rips. Trump says he has no intention of firing JAYPOW – dollar rips, BTC rips some more.
Dollar weakness factor
Bitcoin’s rally also followed a recent drop in the U.S. Dollar Index to a three-year low, reinforcing its perception as protection against dollar weakness and traditional finance risks.
