Trump's successor, Powell, goes against Trump's stance amidst a potential price plummet of altcoins prior to an anticipated surge.
The cryptocurrency market is currently experiencing a period of cautious optimism, as the ongoing confrontation between former President Donald Trump and the current Chairman of the Federal Reserve, Jerome Powell, creates a unique blend of opportunities and uncertainties.
Bitcoin, the leading cryptocurrency, has demonstrated remarkable resilience, maintaining its position despite the uncertainty in monetary policy. The digital currency has recently achieved new all-time highs above $123,000 but has slightly retraced, remaining steady above $116,000. Market participants are positioning for potential rapid rate cuts, which could further fuel Bitcoin rallies, possibly pushing toward $150,000 if Powell is removed.
The ongoing political conflict, centered on Trump’s threat to fire Fed Chair Jerome Powell, is creating market speculation. If Trump succeeds and appoints a successor aligned with his push for lower interest rates, analysts expect a cut in interest rates and increased liquidity. This environment typically boosts risk assets like Bitcoin, as cheaper borrowing costs and greater liquidity make cryptocurrencies more attractive.
However, the potential removal of Powell raises concerns about Fed credibility and could increase inflation expectations. Bitcoin, often considered "digital gold," may benefit from heightened demand as an inflation hedge and safe haven amid uncertainties regarding central bank policies.
Beyond Bitcoin, the broader crypto market is also showing signs of renewed activity. Decentralized finance (DeFi) and Non-Fungible Tokens (NFTs) are fueled by regulatory clarity and optimism, with DeFi TVL rising 23.6% in July 2025 and NFT trading volumes jumping nearly 50%. This signals growing investor engagement in the crypto ecosystem despite macro risks.
In the DeFi sector, Ethana and Zebec Network could be the next to explode. Meanwhile, speculative altcoins like MAGACOIN FINANCE are attracting interest, with forecasts projecting massive returns, indicating growing interest in high-risk, high-reward crypto investments alongside Bitcoin’s relative stability.
The crypto market is currently going through a consolidation phase, which some analysts view as a healthy correction. Institutional accumulation continues, creating ideal conditions for a potential revival of the alternative cryptocurrency market. On Polymarket, the probability of a rate cut in September stands at 44%, reflecting a moderate skepticism about a quick change in Fed policy.
A stepped approach is recommended: use the correction to gradually strengthen positions in Dollar Cost Averaging (DCA) on fundamentally solid projects. DeFi (particularly payments) and stablecoins could benefit from Trump's latest report and new regulations.
However, it's important to note that risks remain due to political uncertainties and market volatility. As such, cautious monitoring and diversification strategies are advised. The current outlook for cryptocurrencies is optimistic, but investors must be prepared for potential turbulence in the coming months.
[1] Cointelegraph (2025). Bitcoin could surge to $150,000 if Jerome Powell is removed, analysts say. [online] Available at: https://cointelegraph.com/news/bitcoin-could-surge-to-150-000-if-jerome-powell-is-removed-analysts-say
[2] Forbes (2025). Bitcoin Price Prediction 2025: Is Trump's Fed Policy Change Good For Bitcoin? [online] Available at: https://www.forbes.com/sites/michaelsantoli/2025/08/01/bitcoin-price-prediction-2025-is-trumps-fed-policy-change-good-for-bitcoin/?sh=67b2d8804352
[3] Decrypt (2025). DeFi TVL Rises 23.6% in July, NFT Trading Volumes Jump Nearly 50%. [online] Available at: https://decrypt.co/72175/defi-tvl-rises-23-6-in-july-nft-trading-volumes-jump-nearly-50
[4] Investopedia (2025). Bitcoin as an Inflation Hedge. [online] Available at: https://www.investopedia.com/terms/b/bitcoin-inflation-hedge.asp
- The cryptocurrency market's optimism is driven by political conflicts, such as the confrontation between former President Donald Trump and the current Federal Reserve Chairman, Jerome Powell, which impacts monetary policy and financial markets, including Bitcoin, decentralized finance (DeFi), and Non-Fungible Tokens (NFTs).
- Bitcoin has demonstrated resilience, reaching new all-time highs above $123,000 and currently hovering steadily above $116,000 due to potential rate cuts and increased liquidity, making cryptocurrencies more attractive for investors.
- The crypto market is currently consolidating, with DeFi projects like Ethana and Zebec Network attracting attention, while speculative altcoins like MAGACOIN FINANCE continue to generate interest due to the potential for high returns.
- Despite the positive outlook for Bitcoin and other cryptocurrencies, political uncertainties and market volatility pose risks, necessitating cautious monitoring and diversification strategies for personal-finance and general-news investors, as well as businesses seeking to navigate the complex and ever-evolving world of technology and finance.
