Bitcoin Soars as Trump Appoints Pro-Crypto Advocate to Federal Reserve

Markets react to political shift with bullish momentum

In a move that sent shockwaves through financial circles, former President Trump's latest Fed nomination—a vocal Bitcoin proponent—ignited an immediate price surge. The crypto market's Pavlovian response to regulatory signals proves Wall Street still plays by old rules, just with shinier toys.

Fed's new direction: blockchain over bailouts?

Digital asset traders piled into BTC positions within minutes of the announcement, betting on friendlier monetary policy. Meanwhile, traditional investors scrambled to decode what 'HODL' means—better late than never for the suits.

One banking lobbyist was overheard muttering: 'First they ignore the revolution, then they appoint it to office.' The revolution, unsurprisingly, mooned.

Who is Stephen Miran?

Stephen Miran, currently serving as the chairman of the Council of Economic Advisors, has a track record of supporting Bitcoin. He previously worked in the U.S. Treasury during Trump’s first term and has publicly written in favor of digital assets. Trump described Miran as having “unparalleled” economic expertise and said he had “served with distinction” during his prior administration.

Miran is expected to take over the seat recently vacated by Adriana Kugler and serve until January 31, 2026, pending approval. His nomination marks one of the most overt pro-Bitcoin moves from Trump during his current campaign.

Market Reaction: Bitcoin Price Rises

Traders quickly responded to the reveal , interpreting it as a positive signal for risk assets like Bitcoin. According to Greg Magadini, Director of Derivatives at Amberdata, “He’s expected to be dovish, which is what Trump wants. The market reaction seems to think so.”

Magadini explained that a dovish Fed—one that favors lower interest rates and easier monetary policy—tends to be bullish for Bitcoin. Lower rates generally weaken the dollar and push investors toward alternative assets like Gold and digital currencies.

Bitcoin ETFs also reflected this sentiment shift. On the same day as the nomination, Bitcoin exchange-traded funds pulled in $91.6 million, snapping a four-day streak of outflows. This marked a major turnaround and suggested that investors were regaining confidence in the crypto sector following last week’s retreat.

Inflation Concerns Remain

Despite the bullish outlook from bitcoin investors, not everyone sees the move in a positive light. Magadini warned that if the Fed starts tilting too heavily in favor of political pressure, its credibility and independence could come under threat.

“If the Fed loses its independence and ability to fight inflation, this starts to look like a mini 1970s moment,” he said.

The 1970s were marked by severe inflation and declining faith in U.S. monetary leadership, culminating in the collapse of the Bretton Woods system. Gold prices soared during that period—from $35 per ounce in 1970 to over $700 by 1980. Some analysts now fear similar inflationary trends could reappear if central banks become overly politicized.

Recent data adds fuel to that concern. The latest Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation measure, rose to 2.6%, above its 2% target and higher than the prior three-month average of 2.3%.

Treasury Auctions and Gold Trends Signal Market Jitters

Another worrying sign is the performance of recent U.S. Treasury auctions, which have shown weaker demand—a red flag that investors are beginning to question the government’s fiscal health. Meanwhile, gold prices have continued to rise, another classic signal of inflation fears.

“This tells me the market views all this as inflationary,” Magadini added.

In this environment, Bitcoin’s reputation as “digital gold” becomes increasingly relevant. While still a fraction of the size of traditional markets, crypto assets like Bitcoin continue to attract attention as hedges against inflation and policy uncertainty.

Outlook: Bitcoin’s Role in a Changing Financial Landscape

The nomination of Stephen Miran could represent a broader shift in how U.S. economic institutions approach cryptocurrency. With a growing chorus of political voices—especially from Trump’s camp—pushing for more crypto-friendly regulation and policies, Bitcoin could become a key talking point in the 2024 presidential race and beyond.

Still, investors remain cautious. While a dovish Fed may boost short-term Bitcoin price momentum, the long-term implications for inflation, debt, and economic stability are less clear.

As one analyst put it, “Bitcoin may gain from easier money today, but the real question is whether the financial system can handle the consequences tomorrow.”

For now, Bitcoin traders appear encouraged. But with central bank policy and politics increasingly intertwined, markets are preparing for more volatility ahead.