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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
08/19/2025

Bitcoin Isn't Fully "Priced In" Until Trump Announces the New Fed Chair

Some experts argue that the Fed's September rate cut is already partially priced into Bitcoin. However, according to economist Alex Krüger, the market won't fully price it in until President Donald Trump announces Jerome Powell's successor as Fed Chair. Markets Are Betting on a September Rate Cut Most investors currently believe the Fed will deliver its first rate cut of the year on September 17. This is a positive signal for risk assets, including Bitcoin, which had already surged to new all-time highs before pulling back to around $115,000.

Bitcoin Isn't Fully "Priced In" Until Trump Announces the New Fed Chair

Some experts argue that the Fed's September rate cut is already partially priced into Bitcoin. However, according to economist Alex Krüger, the market won't fully price it in until President Donald Trump announces Jerome Powell's successor as Fed Chair.

Markets Are Betting on a September Rate Cut

Most investors currently believe the Fed will deliver its first rate cut of the year on September 17. This is a positive signal for risk assets, including Bitcoin, which had already surged to new all-time highs before pulling back to around $115,000.

Krüger emphasized that the decisive factor is who Trump picks to replace Powell — especially if it's someone with a dovish stance, meaning a preference for looser monetary policy. In that scenario, market sentiment could shift dramatically and Bitcoin would be repriced immediately.

Powell Replacement Candidates

Although Powell's term runs through May 2026, Trump has been sizing up potential replacements early. According to CNBC, there are as many as 11 candidates under consideration, including:

  • David Zervos, Chief Market Strategist at Jefferies
  • Rick Rieder, Global Chief Investment Officer of Fixed Income at BlackRock
  • Larry Lindsey, former Fed Governor

Some reports suggest the list has been narrowed down to 3–4 names and Trump could announce his decision sooner than expected.

The Strained Relationship Between Trump and Powell

The relationship between Trump and Powell has never been particularly smooth. The U.S. president has repeatedly criticized the Fed for not cutting rates fast enough. Back in April, Trump even declared: "Powell's termination cannot come fast enough!"

This only heightens expectations that a leadership change at the Fed could mark a major turning point in monetary policy — and directly move the price of Bitcoin.

Market Signals

According to the CME FedWatch tool, 83.9% of traders believe the Fed will cut rates at its September meeting. David Duong, Global Head of Research at Coinbase Institutional, noted there is still "a large amount of retail capital sitting in money market funds" and that Fed easing could "unlock that flow into the crypto market over the medium term."