The mounting pressure on the current Federal Reserve chair, Jerome Powell, has now become quite grave. The murmurs of Powell’s resignation have started to gain mainstream attention. Powell has long been under pressure to cut Fed rates immediately, an order that Powell has been defying as of late. This pressure has now become palpable, as President Donald Trump has openly criticized Powell, stating his desire to appoint a new Fed chair.
This development has gripped the markets with ambiguity, with investors thinking twice before exploring the markets actively. White traditional markets continue to adopt a dubious stance while exploring the market domain. Here’s how Bitcoin may react to this news if Jerome Powell submits his resignation in the near future.
Also Read: Top Source Claims Powell Could Resign, Markets Brace for Impact
Powell’s Resignation May End Up Impacting Bitcoin: Two Possible Scenarios
1. A Massive Bitcoin Surge Is Underway
The pressure on Powell to resign is now gaining steady traction. Senator Cynthia Lummis, alongside Florida Congresswoman Anne Paulina Luna, has stated that Powell must resign, with Paulina adding a hint of surety to her statement. This development has sparked a widespread market frenzy, with traditional investors in particular holding their breaths at large.
Powell’s resignation has not yet been confirmed, but the said development is sparking a high level of market uncertainty at the moment. Powell’s resignation at large may spark a traditional market frenzy, which could lead investors to invest in Bitcoin to safeguard their assets. With Bitcoin acting as a hedge during the time, it could significantly help BTC turn its fortune around for good.
2. Dovish Fed Hopes May Fuel Bullish BTC Momentum
Trump has already mentioned his intent to appoint a new Federal Reserve chair. If the new chair appointed is inclined towards liberal rate cuts, it could again signal heightened traditional market uncertainty. Lower interest rates tend to weaken the US dollar, all while making borrowing cheaper. This may again compel investors to invest in assets like Bitcoin or gold to secure their financial routes and profits.
Also Read: Analyst Reveal Bitcoin’s (BTC) Next Key Zones – Breakout or Breakdown?