Bitcoin News Today: Trump's Next Pick Could Shape Bitcoin’s Fate More Than Rate Cuts

Bitcoin investors remain uncertain about how a potentially more dovish Federal Reserve, influenced by a new chair appointed by U.S. President Donald Trump, will impact the digital asset. According to economist Alex Krüger, the market has yet to fully price in the implications of the Fed’s future monetary policy, which will depend on the individual Trump selects to replace Jerome Powell, whose term as chair ends in May 2026. “This would start to get priced in once Trump announces his nominee to replace Powell,” Krüger said in an X post. Bitcoin traders are currently viewing the Fed’s expected first rate cut of the year in September as a bullish catalyst for Bitcoin, but the extent of price movements will largely depend on the Fed’s direction under new leadership [3].

Trump’s frustration with Powell has been well-documented, particularly regarding the Fed’s decision to delay rate cuts and its handling of the $3.1 billion headquarters renovation project. On Truth Social, Trump referred to Powell as “truly incompetent” and threatened to allow a “major lawsuit” against him to proceed. The project, which has exceeded its initial budget by approximately $600 million, has become a focal point of Trump’s criticism. During a recent visit to the construction site, Powell corrected Trump’s figures, clarifying that the cost included another building, but the tension between the two remains high [4].

The search for Powell’s successor is in full motion, with the Trump administration reportedly considering 11 potential candidates. Among them are prominent figures such as current Fed officials, economists, and market strategists. Treasury Secretary Scott Bessent, overseeing the selection process, confirmed the administration is engaged in a “formal process” to identify a new chair. The shortlist includes individuals like James Bullard, Kevin Hassett, and David Zervos, each bringing distinct views on monetary policy and central bank operations [1]. Most candidates advocate for lower interest rates and have expressed concerns about the Fed’s current trajectory. For example, former Fed Governor Kevin Warsh called for “regime change,” while market strategist David Zervos suggested the Fed could lower rates aggressively [1].

Trump has narrowed the list to “three or four” candidates and has hinted at making an announcement sooner than expected. The decision carries significant weight for markets, as the Fed’s policies influence not only traditional asset classes but also Bitcoin. Krüger emphasized that the right Fed chair nominee could “push the price [of Bitcoin] even further” by implementing more dovish monetary policy. This is particularly relevant given Bitcoin’s recent pullback of about 6% to roughly $115,150 after hitting a new all-time high [3]. Market participants are closely watching for a potential September rate cut, with 83.9% of CME FedWatch Tool participants anticipating such a move [3].

The selection of a new Fed chair is a pivotal moment for U.S. monetary policy, with implications for inflation, employment, and risk-taking behavior in financial markets. While Trump has criticized the Fed for its current policies and leadership, the process of selecting a successor is being carried out through established procedures. Bessent has indicated that Powell could step down from the board when his term as chair ends, but his term as a Fed governor will continue until 2028. The outcome of this selection could shape the Fed’s approach to economic challenges in the coming years and, by extension, the broader financial landscape, including Bitcoin’s price trajectory [2].

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[1] 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)

[2] Trump says Fed chair search down to three or four candidates, announcement coming a little bit early (https://www.foxbusiness.com/politics/trump-says-fed-chair-search-down-three-four-candidates-announcement-coming-a-little-bit-early)

[3] Bitcoin won't be 'priced in' until Trump announces new Fed chair, economist says (https://cointelegraph.com/news/bitcoin-price-factor-top-federal-reserve-chair-september-rate-cuts)

[4] Trump Might Greenlight Major Lawsuit Against Fed Chair Jerome Powell (https://www.forbes.com/sites/saradorn/2025/08/12/trump-might-greenlight-major-lawsuit-against-fed-chair-jerome-powell/)