Fed Chair Jerome Powell Under Investigation: How This Could Impact Bitcoin’s Price in 2024
- Why Is Jerome Powell Facing Legal Heat?
- Bitcoin as the "Anti-Fed" Trade: Analyst Takes
- Kevin Hassett: A Bitcoin-Friendly Fed Future?
- Market Reactions: Short-Term Chaos, Long-Term Gain?
- Trump’s Denial & the "Building" Dig
- FAQ: Your Burning Questions Answered
As bitcoin investors brace for the Federal Reserve’s upcoming rate decision, a bombshell drops: the Trump administration is reportedly pursuing criminal charges against Fed Chair Jerome Powell. The allegations stem from Powell’s testimony last summer about a Fed construction project, with critics accusing him of prioritizing public interest over presidential preferences. Analysts suggest this political turmoil could fuel Bitcoin’s appeal as a "non-sovereign risk asset." Meanwhile, Polymarket odds show only a 13% chance Powell is ousted before May. Could this drama be the catalyst for Bitcoin’s next rally? Let’s dive in. ---
Why Is Jerome Powell Facing Legal Heat?
In a fiery Sunday statement, Powell framed the DOJ probe as retaliation for the Fed’s independence: "We set rates based on public good, not political whims." Trump’s frustration isn’t new—he’s repeatedly blasted Powell for "moving too slow" on rate cuts, even quipping in November, "I’d love to fire his ass." The tension underscores a broader battle over central bank autonomy, a theme Bitcoin maximalists argue validates Satoshi’s vision.
---Bitcoin as the "Anti-Fed" Trade: Analyst Takes
"When trust in the dollar or central banks erodes, decentralized assets like BTC gain narrative premiums," Bitunex analysts told Cointelegraph. Crypto researcher Will Clemente put it bluntly: "This is literally what Bitcoin was built for." Historical data supports this: During the 2013 Cyprus bail-in and 2020 pandemic money-printing spree, BTC surged 400% and 300%, respectively (CoinMarketCap).
---Kevin Hassett: A Bitcoin-Friendly Fed Future?
Polymarket predicts Powell will likely serve his full term, but TRUMP ally Kevin Hassett emerges as a potential successor. Hassett’s pro-crypto leanings and dovish monetary stance could indirectly boost BTC. Lower rates typically push investors toward risk assets—think tech stocks or crypto. Remember 2019? The Fed’s "mid-cycle adjustment" preceded Bitcoin’s 200% run-up.
---Market Reactions: Short-Term Chaos, Long-Term Gain?
While immediate price action hinges on Wednesday’s Fed decision, long-term implications are clearer. As the BTCC team notes, "Political interference in central banks historically correlates with increased BTC adoption." Case in point: Nigeria’s 2021 Bitcoin boom after its central bank restricted fiat access.
---Trump’s Denial & the "Building" Dig
Trump claims ignorance about the DOJ probe but couldn’t resist a jab: "He’s not very good at the Fed—or building." Ironic, given Bitcoin’s blockchain is arguably the most robust "building project" in finance.
---FAQ: Your Burning Questions Answered
Could Powell actually be fired?
Unlikely. The Federal Reserve Act makes removing a chair politically thorny. Polymarket gives it just a 13% chance.
How might lower rates affect Bitcoin?
Cheaper money typically flows into higher-risk assets. The 2020 rate cuts saw BTC outpace gold by 5:1 (TradingView).
Is this investigation really about Bitcoin?
No, but the fallout—eroding trust in institutions—plays into crypto’s Core value proposition.
