Bitcoin Climbs as Trump Softens Tone on Firing Fed Chair Powell
📌 Key Takeaways
- Trump denies immediate plan to fire Fed Chair Powell, but leaves the door open
- Bitcoin (BTC) jumps to $119K, up 7.74% over the week
- BTC dominance dips slightly to 63.42%
- BTC futures open interest rises to $87.63B, liquidations hit $54.91M
- Market volatility driven by mixed Fed signals and interest rate tension
Trump Denies Powell Firing: Markets React
On Wednesday, President Donald Trump publicly stated that his administration is “not planning” to fire Federal Reserve Chairman Jerome Powell, despite persistent rumors to the contrary.
Speaking to reporters, Trump softened his previous harsh stance but added, “I won’t rule anything out.” The remark follows earlier reporting from CNBC that a White House official claimed Trump was ready to remove Powell, accusing him of being too hawkish on interest rates.
Trump has repeatedly criticized Powell for keeping interest rates between 4.25% and 4.50%, claiming it costs the U.S. “one trillion dollars a year” in debt payments and hurts economic growth.
📈 Bitcoin Reacts to Powell Headlines
Shortly after Trump’s remarks, Bitcoin (BTC) surged to $119,000, a 1.95% rise over 24 hours. The digital currency has now gained 7.74% over the past week, as traders respond to potential monetary policy shifts.
📊 Bitcoin Market Metrics
| Metric | Value | 24H Change |
|---|---|---|
| Price | $118,946.51 | +1.95% |
| Weekly Price Range | $116,241 – $119,929 | — |
| Market Cap | $2.38 trillion | +2.23% |
| BTC Dominance | 63.42% | -0.63% |
| 24H Trading Volume | $71.07 billion | -22.42% |
| Futures Open Interest | $87.63 billion | +2.27% |
| Total Liquidations | $54.91 million | — |
| Short Position Liquidation | $42.05 million | — |
| Long Position Liquidation | $12.86 million | — |
📉 BTC Liquidations Signal Bullish Tilt
The majority of liquidations were on short positions, totaling $42.05 million, compared to $12.86 million in longs. This indicates that many traders bet against BTC’s rally but were caught off guard by Trump’s softened rhetoric.
Increased futures open interest shows rising market participation, while the slight drop in BTC dominance suggests traders are also exploring altcoins.
💬 What’s Next for Bitcoin?
Bitcoin’s reaction highlights how macro policy rumors, especially related to Federal Reserve leadership and interest rates, can significantly sway crypto markets.
With Trump’s “I won’t rule anything out” statement still hanging in the air, investors should brace for further volatility, particularly as rate cut expectations and Fed independence debates intensify ahead of the 2025 election.
🔚 Final Thoughts
Trump may have temporarily calmed markets by walking back Powell firing rumors, but his continued criticism of the Fed and rate policy keeps uncertainty high.
Bitcoin’s strength amid the noise reinforces its role as a macro-sensitive, alternative asset, especially when institutional uncertainty rises.
📢 Do you think Trump will follow through on firing Powell later? Drop your thoughts in the comments below!
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