Bitcoin investors have not been able to afford a potentially slippery federal reserve, depending on who the US president Donald Trump has appointed to replace Jerome Powell, says economist Alex Krüger.
Bitcoin (Btc) entrepreneurs see the first Fed rate of this year, which is expected in September, as creating a more bullish environment for Bitcoin. The nominee of the right fed chair can push the price more.
Eye markets September September reduction
“I have a high level of confidence that this cycle has not ended because I expect Fed changes to bring in a darker financial policy,” Krüger Says To an x post on Monday.
“It will start to get the price once Trump announced his nominee to replace Powell,” he said. Powell’s term expired in May 2026, and Trump has begun to pass the names as potential candidates to replace him.
The Fed primarily affects Bitcoin through its financial policy, which influences interest rates, general sentiment on the market, and if investors are willing to take risks oi play it safely.
According to a CNBC Report On Wednesday, the Trump administration considered 11 candidates to replace Powell.
The latest names added to the list include Jefferies’ Chief Market Strategist David Zervos, Global Fixed Income Chief Investment Officer Rick Rieder, and former Fed Governor Larry Lindsey.
Other reports suggest Trump has diminished the list to three or four candidates and may announce a replacement earlier than expected.
Trump’s relationship with Powell has been strained since his inauguration in January, with the President repeatedly criticizing the Fed’s reluctance to cover the rates and public calling Powell.
Trump and Powell’s relationship has become tense
In April 17, Trump said“Powell’s termination can’t come quickly!” Meanwhile, Florida Senator Rick Scott agreed with the President, saying“It’s time for the new leadership to the Federal Reserve.”
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Krüger said he believes the Fed will cut the rates at this Sept. 17.
The view was widely distributed by the market, with 83.9% of participants expecting a cutting rate, According to In the tool of the CME Fedwatch.
On Friday, the Coinbase Institutional’s Global Leader of Research, David DuongIt is said that there is a “significant retail capital sitting on the sides” in the money market funds, and the Fed’s emergence can “unlock more retail participation in the medium term.”
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