Bitcoin slid to a two-month low on Friday as concerns that the next U.S. Federal Reserve chair could tighten liquidity lifted the dollar and pressured risk assets.
President Trump said he'll pick the next Federal Reserve chair by next week, renewing criticism of current chair Jerome Powell. Pro-crypto Governor Chris Waller has gained momentum as a leading contender, drawing attention from digital-asset markets.
The Federal Reserve left its benchmark rate unchanged at 3.50%–3.75%, while Bitcoin (BTC) and Ethereum (ETH) showed little movement as markets await Chair Jerome Powell's speech for further guidance.
Bitcoin faces renewed downside risk after President Trump threatened harsher military action on Iran as the cryptocurrency attempts to reclaim the $90,000 level ahead of today’s Fed decision. Traders may react to heightened geopolitical uncertainty on top of looming interest-rate signals.
BlackRock CIO Rick Rieder has become a popular pick in online betting as Trump weighs his next Federal Reserve chair, and he’s known for a pro-crypto stance — calling Bitcoin the 'new gold.' His views have drawn attention from investors watching policy risks and digital-asset adoption.
Powell may signal a 'dovish pause' at this week's Fed meeting, which could weaken the dollar and provide near-term upside for Bitcoin. Still, remarks on balance-sheet policy or lingering inflation risks could curb any sustained rally.
Reports say the race to replace Jerome Powell is tilting toward a Bitcoin-friendly executive from BlackRock, signaling a major shift in the politics around monetary policy and crypto. Markets are watching for implications on regulation and central bank independence.
ECB chief economist Philip Lane warned political pressure on the Fed could raise U.S. term premiums and unsettle the dollar’s global role; investors are increasingly eyeing Bitcoin as a non-sovereign alternative.
Minneapolis Fed President Neel Kashkari on Jan. 14 labeled cryptocurrencies "basically useless," underscoring continued skepticism from a senior Fed policymaker. His remarks signal potential political and regulatory headwinds for the industry.
U.S. December CPI matched expectations at 2.7%, keeping inflation pressures contained. Bitcoin climbed above $92,000 as markets priced in a higher chance of Fed rate cuts.