Cryptocurrency Market Stirs Amid Powell Dismissal Rumors

Source

Bloomingbit Newsroom

Summary

With the rumors surrounding Jerome Powell's dismissal as Chair, the cryptocurrency market surged on expectations of a rate cut.
Bitcoin surpassed $120,000 and Ethereum exceeded $3,400, reflecting heightened investor expectations.
Although President Trump immediately denied the Powell dismissal rumors, the industry believes Powell’s position will continue to influence the global financial and cryptocurrency markets.

Crypto A to Z

Optimism Over Rate Cuts Spreads

Bitcoin Surges Past $120,000 Again

Ethereum Exceeds $3,400

Trump Denies Dismissal Rumors

Rumors about the dismissal of Jerome Powell, Chair of the Fed, have caused a stir in the cryptocurrency market.

On the 16th, Bloomberg and CNBC reported, citing White House officials, that President Donald Trump told Republican lawmakers he intended to dismiss Chair Powell. According to these sources, "The President asked Republican lawmakers for their opinions on dismissing Powell, and they agreed." The New York Times (NYT) also reported that President Trump had drafted a letter for Powell's dismissal, giving more weight to the rumors.

So far, Powell has maintained a hawkish monetary policy to curb inflation, delaying the timing of rate cuts as much as possible. President Trump, who has persistently called for rate cuts, publicly expressed his disapproval of Powell, saying, "Stupid Powell is unfit to lead the Fed," delivering strong criticism.

Consequently, Powell’s dismissal rumors have raised expectations for a Fed rate cut. This optimism has spread to the stock market as well. In particular, the cryptocurrency market viewed the news as an immediate boon. Bitcoin (BTC), which had been fluctuating around $118,000, rebounded by surpassing $120,000 again. Ethereum (ETH) also exceeded $3,400, while Ripple (XRP) broke the $3 mark.

Contrary to market expectations, President Trump promptly denied the Powell dismissal rumors. When asked whether he would dismiss Powell, he reportedly said, "It is very unlikely," and dismissed the rumors with, "There will be no immediate action." However, Trump did mention, "It would be great if Powell resigned," suggesting the possibility of a surprise replacement remains. An industry insider commented, "The fate of Chair Powell will act as a key variable for U.S. monetary policy, the global financial market, and even the cryptocurrency market."

Suhyun Lee, journalist at BloomingBit shlee@bloomingbit.io