Bitcoin to the Moon: The Role of Powell (And It’s Not Just Rate Cuts)

A lot of Bitcoin watchers are keeping an eye on the upcoming Federal Reserve meeting. Jerome Powell, the Fed Chair, might lower interest rates considering the latest inflation and job stats. This could give Bitcoin's long-term growth a kickstart. But honestly, the real big deal would be if Powell were to lose his position. Donald Trump is really pushing to take charge of the Fed. He's already got someone in there ready to cut rates whenever he wants. Plus, a prosecutor aligned with Trump has opened a case against Powell. They used similar tactics to get rid of another Fed board member who was too vocal about rate cuts. So if Powell’s out, nobody on that board would dare oppose lowering rates. If we lose our monetary policy independence, global trust in the dollar would tank, which would leave Bitcoin as the only reliable option for value. And as inflation starts creeping up while rates stay low, you can bet that BTC's price will soar against a weakening dollar.

I don’t really get why Bitcoin’s growth is always credited to US politics. Yes, the US is a big market and rate cuts can boost risk assets, but Bitcoin was already moving up even before Trump won. Now it feels like every pump gets tied to Trump decisions like he’s the main driver. US policy can influence liquidity, sure, but Bitcoin isn’t only a US story. It runs on global demand, its own cycles, and market structure too. If BTC goes up, it’s not automatically because of one politician.

Bitcoin's price can be credited to politics sometimes, whether negative or positive, but this user exaggerates it. He has previously said that the last Bitcoin surge was a "fakeout", that it will dip soon, and now he's saying the price is going "to the moon". Monetary policies, political policies and political events as a whole can have an impact on the movement of Bitcoin, depending on how global it is or how big the market of the country is, but attributing every bitcoin movement to a particular person or policy is exaggeration, and we have been seeing this since Trump won the elections. It's now like Bitcoin was dormant before Trump took office, or Bitcoin wouldn't have grown without Trump.

I have mixed feelings about this. On the one hand, individually, I prefer a low interest rate policy that will ultimately inflate assets that will beat inflation. But on the other hand, there are many people, including people around me, who are going to be even more screwed because they depend on a salary that is not going to keep up with inflation. A society with too much inflation is not good either, because then everything gets screwed up, and if you are rich, you will be better off than the poor, but societies with moderate inflation and a middle class that can maintain itself despite that moderate inflation are better for everyone.

Powell was put there by DT. There is no guarantee that DT knows best. On tariffs he is plainly wrong, at least how he employs those. Anything of above 10% causes a stir.

Powell losing his power because Trump doesn't want him could have a very long term terrible implications. There is a reason why FED reserves and politics are independent from each other, no matter how much you hate the decisions made by Powell, if he can be taken from power by the president, then it would mean that the next president would do the same and basically FED would be always filled with people who will do whatever president will tell him to do if they want to keep their job. That would be very dangerous and damaging.

The US politics is credited to making the news every time, I don’t know if there is a US president that has stared in the news more than Donald Trump. Donald Trump made is that the success of bitcoin be credited to the US politics, Bitcoin’s growth should not be credited to US politics and if bitcoin is doing bad it should also not be attributed to US politics but when it was know that Donald Trump won the election people started to buy more bitcoin and the price grew during that time.

Donald Trump has chosen a powerful weapon: tariffs against specific countries and the world as a whole. Changes in these policies inevitably ripple through the global economy, and Bitcoin is no exception—it reacts to the US President’s words and actions in real-time. It seems the entire world is now tethered to Trump’s decisions, and crypto is right there with it. This brings massive risks. For instance, what happens if there’s a conflict over Taiwan? What would that mean for the production of ASIC miners? And if the hardware supply chain breaks, what happens to Bitcoin then?

Like anyone else, I make both short-term and long-term projections. I maintained that Bitcoin wouldn’t hit $100K right away, and so far, that call has been proven correct. In the long run, I believe the dollar will lose ground to Bitcoin. As that happens, cryptocurrency will solidify its position as the ultimate safe-haven asset for people's savings.

US is a very powerful country. They are influential and they drive a lot of the global’s economic market but of course it doesn’t mean they are the only country that can drive the economy. But their influence can’t be denied either. It’s not just bitcoin that gets affected but other economic sectors.