Bitcoin News Today: Bitcoin jumps over 2% as Trump nominates pro-crypto Fed nominee

Bitcoin surged over 2 per cent to nearly $117,500 following U.S. President Donald Trump's announcement of Stephen Miran’s nomination to the Federal Reserve Board. Miran, who currently serves as chairman of the Council of Economic Advisers and holds a Harvard University economics Ph.D., is known for his pro-cryptocurrency stance. His appointment signals the Trump administration’s growing interest in digital assets and their integration into traditional financial systems [1].

The nomination, revealed via the Trump 47 White House account on X, designates Miran for a temporary seat on the Fed Board until January 31, 2026. This role fills a vacancy left by a previous board member, with a search for a permanent successor ongoing. Trump praised Miran for his “unparalleled” economic expertise and his contributions during both of his presidential terms [2].

Miran’s views on cryptocurrency have drawn attention from market analysts. In a January 2024 tweet, he remarked humorously about Bitcoin ETFs being "zeroed," which some interpreted as a sign of his optimism toward crypto investment products. Matthew Sigel, head of digital assets research at VanEck, noted the post, suggesting that Miran may advocate for greater acceptance of digital assets within financial regulation [2].

Miran’s appointment aligns with broader pro-crypto initiatives by the Trump administration, including an executive order allowing 401(k) plans to include cryptocurrency investments and banning ideological debanking. These policies reflect a strategic shift to liberalize financial regulations and promote alternative asset classes. The Trump 47 team is also reportedly considering Fed Governor Christopher Waller as a potential replacement for Jerome Powell as Fed Chair, further reinforcing the administration’s influence over monetary policy [2].

The Fed Board nomination now awaits formal confirmation. Until then, Miran’s temporary role will provide the Trump administration with leverage over monetary policy, particularly in shaping the regulatory landscape for digital assets. Analysts suggest that his pro-crypto background could influence future decisions at the Fed, especially regarding the treatment of cryptocurrencies in U.S. financial systems [2].

The market reaction to Miran’s nomination has been immediate and positive. Bitcoin’s jump to $117,500 underscores investor confidence in the potential for favorable regulatory developments. Traders are interpreting the move as a sign that the U.S. central bank may adopt a more accommodating stance toward digital assets in the near future [1].

Miran’s academic and professional background in economic strategy and financial regulation positions him to play a pivotal role in shaping the Fed’s approach to digital assets. His tenure at the Council of Economic Advisers and the Treasury has given him extensive experience in policy formulation, making him a strategic choice for a temporary board role [2].

The nomination also highlights the increasing politicization of the Fed, particularly in its monetary policy decisions. Miran’s pro-crypto orientation suggests that the Trump administration is seeking to align the Fed with its broader economic agenda, which includes promoting innovation and deregulation in the financial sector [3].

Despite the positive market response, the appointment has also sparked debate over the appropriate role of the Fed in digital asset regulation. Critics argue that the central bank should maintain an impartial stance on emerging technologies to avoid conflicts of interest. However, supporters of Miran’s nomination believe that his expertise will help the Fed adapt to the rapidly evolving financial landscape [2].

As the Trump administration continues to push for regulatory changes, the impact of Miran’s appointment on the future of U.S. monetary policy remains to be seen. The Fed’s response to his temporary seat will likely shape the trajectory of digital asset integration in the broader financial system. Greg Magadini, director of derivatives at Amberdata, warned that if the Fed shifts in Trump’s favor, it could lose its independence and ability to fight inflation, echoing the risks seen in the 1970s [1].

Magadini noted that the current environment—poor Treasury auctions, rising gold prices, and uncertainty around Fed policy—has parallels to the 1970s. The Bretton Woods system, which pegged currencies to the U.S. dollar, ended in 1973, leading to a significant rise in gold prices. Magadini warned that similar structural risks could arise if the Fed’s credibility erodes [1].

The latest PCE reading came in at 2.6%, above both the Fed’s 2% target and the prior three-month average of 2.3%. U.S. Treasury auctions have shown weak demand in recent weeks, and gold prices have continued to climb, indicating that the market views these developments as inflationary [1].

While Bitcoin is often referred to as "digital gold," Magadini noted that the total market capitalization of the entire crypto market remains small compared to traditional assets. He highlighted that NVIDIA alone is worth more than all the crypto market caps combined, noting that crypto has a lot of room to move higher if the market becomes more worried about inflation [1].

Source: [1] Bitcoin Advances After Trump Taps ... (https://decrypt.co/334143/trumps-fed-appointee-bitcoin-fan-market)

[2] Donald Trump Nominates Pro-Bitcoin Miran as Fed Governor (https://coingape.com/donald-trump-nominates-pro-bitcoin-miran-as-fed-governor/)

[3] Trump Allows Crypto in 401(k) Plans (https://m.economictimes.com/crypto-news-today-live-08-aug-2025/liveblog/123173392.cms)