Bitcoin News Today: Trump's Fed Pick Could Signal a Dovish Shift—And a New Era for Bitcoin

Bitcoin Awaits New Fed Chair Announcement by Trump

Bitcoin’s price volatility continues to draw attention as investors speculate on the implications of U.S. President Donald Trump’s anticipated decision to nominate a replacement for Federal Reserve Chair Jerome Powell. The Fed’s monetary policy, particularly the timing of rate cuts, has become a key factor influencing Bitcoin’s trajectory. Analysts, including economist Alex Krüger, argue that Bitcoin’s price will only fully reflect the potential shift in Fed policy once Trump makes the nomination public. Krüger emphasized that the current market environment suggests a more dovish stance from the Fed is likely, which could create a more favorable backdrop for Bitcoin. “This would start to get priced in once Trump announces his nominee to replace Powell,” Krüger noted on X, citing the influence of the central bank on interest rates and investor sentiment.

Trump has been increasingly vocal in his criticism of Powell’s leadership, with tensions between the two escalating since the president’s inauguration in January. In public statements, Trump has labeled Powell “truly incompetent” and expressed frustration over the Fed’s reluctance to cut rates, which he claims has hurt the affordability of mortgages. On April 17, Trump stated, “Powell’s termination cannot come fast enough!” Florida Senator Rick Scott echoed this sentiment, calling for “new leadership at the Federal Reserve.” According to a CNBC report, the Trump administration is considering 11 candidates to replace Powell, with recent additions including Jefferies’ David Zervos, BlackRock’s Rick Rieder, and former Fed Governor Larry Lindsey. Other reports suggest the list has been narrowed to three or four finalists, and Trump may announce a decision earlier than expected.

The potential for a September rate cut has already begun to influence market sentiment. The CME FedWatch Tool indicates that 83.9% of market participants expect a rate cut at the Fed’s September 17 meeting. Analysts have highlighted the significance of the upcoming Jackson Hole Symposium, where Powell is expected to deliver a speech that could provide further insight into the Fed’s policy direction. Ryan Rabaglia, a cryptocurrency analyst, emphasized that the event could determine whether the market favors a 25 basis point cut. David Duong of Coinbase Institutional noted that a Fed easing cycle could unlock significant retail participation in the medium term, as capital currently held in money market funds may begin to flow into riskier assets like Bitcoin.

The current price action of Bitcoin reflects the uncertainty surrounding the Fed’s next steps. After reaching an all-time high of $124,128 earlier this month, Bitcoin has retreated to approximately $115,150, a 6% pullback. This decline has prompted traders to take a cautious approach, waiting for clearer signals before committing capital. The 200-day moving average near $100,000 is now seen as a critical support level. Greg Magadini of Amberdata highlighted that Powell’s speech could either confirm market expectations or introduce new uncertainty, depending on whether the Fed maintains its independence or cedes to political pressure for rapid rate cuts.

As the search for a new Fed chair progresses, market participants remain closely watching Trump’s decision process. The administration’s shortlisted candidates have expressed diverse views on monetary policy, ranging from aggressive rate cuts to broader structural reforms. Some, like former Fed Governor Kevin Warsh, have called for “regime change,” while others, such as David Zervos and Rick Rieder, advocate for a more dovish approach. Meanwhile, Powell’s term is set to expire in May 2026, but with Trump’s public frustration and growing pressure from allies, the timeline for a replacement may shift.

Source: [1] Bitcoin Price Factor Top Federal Reserve Chair, September Rate Cuts (https://cointelegraph.com/news/bitcoin-price-factor-top-federal-reserve-chair-september-rate-cuts) [2] What Trump's Fed Chair Candidates Have Had to Say in CNBC Interviews (https://www.cnbc.com/2025/08/15/what-trumps-fed-chair-candidates-have-had-to-say-in-cnbc-interviews.html) [3] Trump Narrows Fed Chair Candidates to “Three to Four” (https://www.foxbusiness.com/politics/trump-says-fed-chair-search-down-three-four-candidates-announcement-coming-a-little-bit-early) [4] ‘All Eyes’ Are On This Week's Fed Gathering After Bitcoin Suffers Pullback (https://www.forbes.com/sites/digital-assets/2025/08/18/all-eyes-are-on-this-weeks-fed-gathering-after-bitcoin-suffers-pullback/)