President Trump continues to clash with Federal Reserve Chair Jerome Powell over interest rates, with Trump calling for Powell’s resignation. Despite denials of firing plans, the threat remains. Powell’s potential removal could lead to increased market volatility, particularly in the crypto sector, as investors react to uncertain policy shifts.

Speculation of Powell’s firing has already impacted markets, with two-year Treasury yields falling. The removal of Powell could lead to significant changes in interest rates, potentially fueling higher prices for cryptocurrencies. A new Fed chair aligned with Trump’s views may pursue more aggressive rate cuts, drawing investors towards crypto assets.

The regulatory approach towards cryptocurrencies could shift with Powell’s potential removal. A Trump-appointed replacement could lead to more crypto-friendly policies, potentially removing regulatory barriers and encouraging institutional adoption. Looser regulations could benefit crypto markets, potentially leading to increased institutional interest and investment.

Read more at Nasdaq: Here’s What Could Happen to Cryptocurrency if Trump Fires Jerome Powell