Bitcoin Prepares for Fed Changes as Trump Targets Powell

Bitcoin held steady on Friday as traders prepared for a potential overhaul at the Federal Reserve. U.S. President Donald Trump is reportedly preparing to replace Fed Chair Jerome Powell, a move that could change the central bank's approach to interest rates and market liquidity. The Dow Jones index rose over 300 points midweek, and the spillover effect also reached the crypto market - Bitcoin slightly increased to around 106,950 before a slight fall. The market is seeing this as a signal. If Powell is pushed out to support someone more open to cutting interest rates, risk assets like Bitcoin and Ethereum could benefit. The US dollar has fallen to a three-year low, and bond yields have decreased, further adding to the sense that easy money may be on the way. For cryptocurrency investors, this is a setup worth watching.

Trump May Implement Fed Reform Reports from various sources indicate that Trump is seriously considering replacing Powell before his term ends in 2026. Although no official announcement has been made, sources have said that Trump has discussed potential successors with advisers. His criticism of Powell's policies is not new, but the recent increase in concerns about inflation and pressure in the election year may be accelerating the pace. The market's reaction is immediate. Traders begin to price in the Fed's more dovish policy, which usually means lower interest rates and increased liquidity. This would be good news for crypto, which has been sluggish under tighter monetary conditions over the past year. Bitcoin, often used as a hedge against the depreciation of fiat currency, tends to rise when the dollar falls and interest rates decrease. Bitcoin Price Reacts Cautiously Bitcoin was traded at 106,950 on Friday, with a daily high of 107,250 and a low of 106,145. This is not a breakthrough, but a clear sign that interest is increasing. Ethereum and other top coins are also witnessing similar quiet price movements. Traders are acting cautiously, knowing that talking about replacing the Fed chairman is one thing, but actually doing it is another. Leading Stocks, Following Cryptocurrencies Optimism began with stocks. The Dow rose by more than 300 points, while the S&P 500 and Nasdaq also closed higher. Technology stocks led the rally, driven by falling Treasury yields and hopes that interest rate hikes are now over. This optimism has spilled over into the crypto market, where risk sentiment plays a significant role. Crypto Market Heads to Washington There are still many uncertainties. Powell is still in office and no official replacement has been named. But the fact that President Trump is considering this idea has changed the market. Cryptocurrency investors are particularly sensitive to changes in macroeconomic outlooks, and this could be an important change.