President Donald Trump’s move to explore firing Federal Reserve Chair Jerome Powell has sent shockwaves through financial markets, with Bitcoin prices tumbling amid fears of an “apocalyptic” crash. The White House confirmed Trump’s intentions on April 18, 2025, prompting warnings from analysts about heightened volatility in the cryptocurrency market.
Bitcoin, the world’s largest cryptocurrency, fell 4.2% to $85,128.33 as of April 20, 2025, down from a January peak of $109,026.02, according to CoinMarketCap. The 24-hour trading volume dropped 31.3% to $14.68 billion, reflecting investor caution following Trump’s remarks. The president’s criticism of Powell, posted on Truth Social, targeted the Fed’s decision to maintain interest rates amid tariff-related economic uncertainty.
“This is a huge shock to markets,” said Bilal Hafeez, CEO of Macro Hive, in an interview with The Telegraph. “Firing Powell could trigger chaos, like an apocalyptic scenario for risk assets like Bitcoin.”
The Federal Reserve, responsible for U.S. monetary policy, has been a stabilizing force under Powell’s leadership since 2017. Trump’s push to remove him stems from disagreements over interest rate policies, which the president claims are stifling economic growth. Legal experts, however, question whether Trump has the authority to fire Powell, whose term extends to May 2026. Reuters reported that Powell has publicly stated presidents cannot dismiss Fed chairs, a position that could lead to legal battles.
Crypto markets are particularly sensitive to such developments, as Bitcoin often reacts to macroeconomic shifts. “Powell’s cautious approach has kept inflation in check,” said crypto analyst Lark Davis in a Forbes article. “Removing him risks uncertainty that could crash Bitcoin prices further.”
Industry voices are divided. Some, like Kristin Smith of the Blockchain Association, argue that market turmoil could drive investors toward Bitcoin as a hedge against traditional finance. “Uncertainty in the Fed could make Bitcoin a safe haven, like digital gold,” Smith said. Others, including Senator Elizabeth Warren, warn that disrupting the Fed’s independence could “crash markets across the board,” as she told CNBC.
The broader market context adds complexity. Trump’s global trade tariffs have already fueled volatility, pushing gold to record highs while Bitcoin struggles. Binance CEO Changpeng Zhao hinted at a potential “game-changer” for Bitcoin prices, though details remain unclear, per Forbes. Meanwhile, Ray Dalio, billionaire investor, cautioned that a monetary policy misstep could lead to a crisis worse than 2008.
Investors are bracing for more turbulence. The proposed ouster of Powell faces significant hurdles, including legal challenges and Congressional oversight. The Fed’s next interest rate decision, expected in May 2025, could further influence Bitcoin’s trajectory. Analysts predict short-term price dips but suggest regulatory clarity might stabilize markets long-term.
In summary, Trump’s bid to fire Powell has rattled crypto markets, with Bitcoin facing increased volatility. As legal and political battles loom, investors are watching the Fed’s next moves closely. The outcome could reshape Bitcoin’s role in the global economy, either as a hedge or a casualty of market chaos.
What to Watch Next: The Fed’s May 2025 meeting and potential legal challenges to Trump’s authority will be critical for Bitcoin’s price stability.
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