Bitcoin Breaks $120k as Pressure Mounts on Fed Chair Jerome Powell
In a whirlwind weekend for the financial world, Bitcoin surged past the $120,000 mark for the first time ever, as rumors intensify around potential changes at the helm of the U.S. Federal Reserve. The crypto market’s rally aligns with growing speculation over the future of current Fed Chairman Jerome Powell—whose tenure is now under the microscope amidst calls for his resignation or dismissal. Bitcoin Market Top Is ‘Nowhere Near,’ Say Analysts as Price Pauses at $120K provides further insights into the market’s bullish sentiment.
The Heat is On
Financial markets have been buzzing with whispers of “regime change” at the Fed, particularly after former Fed Governor Kevin Warsh ignited the conversation with his blunt remarks on Fox News. Warsh, a potential successor to Powell, argued that the central bank is in need of a shake-up, citing the Fed’s ongoing $2.5 billion renovation project as a prime example of mismanagement. “Frankly, it’s about breaking some heads,” Warsh stated, adding fuel to the fire as pressure builds for Powell to step down.
On the other side, National Economic Council Director Kevin Hassett suggested that the president’s authority to dismiss Powell is actively being explored, indicating that the possibility of a leadership overhaul at the Federal Reserve is not off the table. This uncertainty seems to have injected fresh energy into the crypto space, as traders anticipate that a new Fed chair could herald a more crypto-friendly monetary policy. Bitcoin Bulls Increase Exposure as Trump’s Pressure on Fed Pushes $15B Into BTC ETFs, Analyst Says explores how political dynamics are influencing market movements.
Trump Turns Up the Volume
President Donald Trump, never one to mince words, also weighed in over the weekend, calling for Powell’s departure. “Jerome Powell has been very bad for our country,” Trump declared, criticizing the Fed’s interest rate policy and the burgeoning renovation costs. He emphasized that the $2.5 billion project began under the Biden administration, yet he questioned Powell’s handling of the financial behemoth.
The Office of Management and Budget (OMB) Director Russ Vought has further cornered Powell with a list of inquiries regarding the renovation, indicating that the project is under intense scrutiny. In response, the Fed has launched a new FAQ page to clarify its position, although it remains to be seen whether this will quell the rising discontent.
Implications for Crypto
The potential for a leadership change at the Federal Reserve is being closely watched by the cryptocurrency community. While Powell has maintained a neutral stance towards digital assets, advocating for clearer regulations on stablecoins and stressing consumer protection, a new chair could shift the Fed’s focus. “A change in leadership might be just what crypto needs,” noted crypto analyst Jessica Lin. “It opens the door to more progressive policies that could foster innovation in the space.”
Powell has consistently described Bitcoin more as a rival to gold than a threat to the U.S. dollar, a view that has kept the Fed’s approach to crypto somewhat conservative. Yet, with demands for more explicit regulation and the risk of “debanking” practices looming large, the market remains on edge, watching for any sign of policy shifts that could emerge from a new Fed leadership.
Looking Ahead
As July unfolds, the financial sector remains on tenterhooks, with every move by the Fed being scrutinized for clues about its future direction. The possibility of a more dovish chair could mean a windfall for risk assets, including cryptocurrencies, which thrive under easier monetary conditions. Yet, whether Powell will be ousted remains an open question, one that has traders and analysts alike speculating on the future trajectory of both the Federal Reserve and the crypto market.
In this volatile mix of politics and finance, the only certainty is that the world will be watching closely—Bitcoin enthusiasts perhaps more eagerly than most. As the summer progresses, the unfolding drama promises to keep investors on their toes, waiting to see if the winds of change will indeed sweep through the corridors of the Federal Reserve.
Source
This article is based on: ‘Regime Change’ at Fed? Crypto Rallies as Pressure Mounts on Chairman Jerome Powell
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
