Trump is about to "overthrow" Powell - Bitcoin and the global market are in turmoil!

American President Donald Trump once again ignited debates about the potential replacement of the Chairman of the Federal Reserve (Fed) – Jerome Powell. This move has shocked both traditional financial markets and cryptocurrencies, with Bitcoin predicted to possibly regain the 105,000 USD mark thanks to this event.

The impact of this breaking news does not stop at monetary policy, but also affects the price trends of Bitcoin, altcoin, and macro risk sentiment globally.

Trump's quiet plan to replace Powell sends markets into a frenzy

On June 6, Trump announced that he would soon reveal a replacement candidate for the Fed Chair, although Powell's term still runs until May 2026. If this happens, it would be a "political earthquake" in the monetary policy-making circle, as Trump is believed to be quietly preparing a "Fed successor" behind the scenes, ready to replace Powell when the time is right.

Two months ago, when Trump first mentioned the possibility of firing Powell, the Dollar Index (DXY) plummeted, allowing Bitcoin to surge. Previously, "the king of the coin world" had risen as the market reacted to expectations of loose monetary policy and a decline in confidence in the independence of the Fed.

However, when Trump "hesitated" at the end of April, the price of Bitcoin also adjusted briefly, showing an increasing dependence between cryptocurrency and the credibility of the Fed as well as the policies of the U.S. Treasury.

"I have no intention of firing him... I just want to see Powell take more decisive action in lowering interest rates," Trump shared with reporters in the Oval Office ( on Tuesday.

Now, as the story of finding someone or Powell returning to the negotiating table unfolds, Bitcoin continues to fluctuate sharply.

"This could shake the entire market. It could trigger a strong bull run for cryptocurrencies or lead to deep declines," said Rananjay Singh – founder of TodayCrypto.

Can Trump really fire Powell?

It should be noted that legally, Trump cannot directly fire Powell unless he exploits legal loopholes. The Federal Reserve Act only allows for the firing of the Fed Chair "for cause," which has primarily been serious misconduct or ethical violations in the past.

However, Trump may nominate a successor to Powell before the 2026 deadline – a strategy that Scott Bessent from Key Square Capital once suggested.

"...The nominee will have to wait to officially assume the position of Chair of the Federal Open Market Committee )FOMC( – the agency that sets the most important interest rates in the country. However, statements, forecasts, and even criticisms from this person will have a significant impact on the financial markets," Jon Herold explained.

Bessent is currently the Secretary of the Treasury of the United States. According to some sources, Trump is exploring the possibility of firing Powell. Although there are legal loopholes, many experts believe that firing Powell without just cause could create chaos both legally and in the market.

What does the new Fed Chair mean for Bitcoin and altcoin?

Geoff Kendrick – Head of Digital Asset Research at Standard Chartered – believes that Bitcoin is no longer just a hedge against inflation, but has become a hedge against traditional finance )TradFi( and risks from the Treasury.

"The threat to remove Fed Chairman Jerome Powell falls under the risk category from the Treasury Department – and at that point, Bitcoin's hedging role will come into play," Kendrick shared.

As currency instability increases, Bitcoin is increasingly seen as a decentralized alternative to the system controlled by fiat currency – especially in the context of political intervention.

"If the Fed is 'too slow' in cutting rates, we need to significantly lower interest rates, both in the short term and long term, for upcoming debt. Biden mainly borrows short-term. Now there is almost no inflation, but if it comes back, we just need to raise interest rates. It's very simple! He is making America spend a fortune. Borrowing costs should be much lower," Trump wrote on Truth Social.

Trump believes that the American economy would perform better without Powell, especially in the context of rising public debt. On that basis, many experts see Bitcoin as a "lifeline." And with this expectation, the leading cryptocurrency is looking to reclaim the 105,000 USD mark.

![])https://img.gateio.im/social/moments-ba562d7d535560f79337b5c50410695a(Bitcoin price performance chart )BTC( | Source: TradingViewMeanwhile, the impact does not stop at Bitcoin. Altcoins – which have been very stagnant in 2025 due to the quantitative tightening )QT( and weak expectations for interest rate cuts – may now be given the "green light" for a new price surge.

"This is the most important news for altcoin holders. The main reason for the delay in the altcoin season is due to the QT program and the minimal interest rate cuts. But this may change soon… The new Fed chair will certainly meet Trump's demands. The altcoin season is approaching," analyst Cas Abbé shared.

A Fed chair likely to support Trump will probably push for aggressive interest rate cuts, loosen financial conditions, and pave the way for liquidity – a factor that "nourishes" the cryptocurrency market. However, potential risks still remain.

"That day could become a global black swan event if it really happens," the famous World of Finance account warns.

This move could open up a strong growth phase for the market or cause widespread system shocks.

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