Trump issues ultimatum to Fed chair as Bitcoin trembles at $75,000. ‘I’ll have to fire him’

Key Points:

• US President Donald Trump threatened to fire Federal Reserve Chair Jerome Powell if he does not step down when his term ends on May 15, escalating tensions between the White House and the Fed.
• Kraken’s chief economist Thomas Perfumo warns that the Fed leadership transition, including the confirmation of Trump’s nominee Kevin Warsh, is a critical but overlooked factor that could significantly impact Bitcoin and other cryptoassets.
• Powell has resisted cutting interest rates amid economic uncertainty, while Warsh is seen as a pro-crypto candidate likely to support rate cuts and increased liquidity, which typically benefits risk-on assets like Bitcoin.
• Powell remains a Fed governor despite his chair term ending, complicated by an ongoing investigation into the Fed’s headquarters renovation that has delayed Warsh’s confirmation and Powell’s exit.
• Bitcoin recently surged to around $75,000 amid easing US-Israeli-Iran tensions but remains 40% below its all-time high; the outcome of the Fed leadership dispute and monetary policy decisions will influence whether the crypto rally continues.