- Economist Alex Krüger says Bitcoin won’t be fully priced in until Trump announces Powell’s Fed replacement, despite widespread September rate cut expectations.
- Trump is considering 11 candidates to replace Powell, and picking someone who favors lower rates could extend Bitcoin’s current cycle.
Economist Alex Krüger claims Bitcoin won’t be fully priced in until Trump announces Powell’s Fed replacement, despite widespread September rate cut expectations. Trump must nominate a replacement for current Chair Jerome Powell before his term expires in May 2026.
Krüger expressed confidence that Bitcoin’s current cycle remains active. The economist posted his analysis on the social media platform X, highlighting the connection between Fed leadership and cryptocurrency market dynamics.
Remarkable how every time you get a correction from new highs so many people start to fret about the cycle top. Over and over again.
Some thoughts on the market:
– This indeed is not early in the move, bitcoin is already 7x from the 2022 lows, and much of the move recently is… pic.twitter.com/x9URFs7PqG
— Alex Krüger (@krugermacro) August 18, 2025
Markets Rally on September Rate Cut Hopes
According to our recent report, JPMorgan predicts the Federal Reserve will start cutting rates in September. The bank sees four quarter-point cuts throughout 2025, dropping the federal funds rate to 3.25%–3.5% by year-end. In addition, the CME FedWatch Tool indicates 83.9% of market participants expect a rate cut during this session.
The Federal Reserve influences Bitcoin through several mechanisms. Interest rate policy affects borrowing costs and investment decisions. Market sentiment shifts based on monetary policy announcements. Risk appetite changes depending on whether the Fed adopts an accommodative or restrictive stance.
Coinbase Institutional’s global research head, David Duong, identified significant retail capital waiting in money market funds. He believes Fed easing could unlock greater retail participation in cryptocurrency markets over the medium term.
Trump Weighs 11 Candidates to Replace Powell
The Trump administration is evaluating 11 potential candidates to replace Powell. Recent additions to the candidate list include prominent financial industry figures.
Jefferies’ chief market strategist, David Zervos, emerged as a potential nominee. BlackRock’s global fixed income chief investment officer, Rick Rieder also appears on the list. Former Fed Governor Larry Lindsey represents another candidate under consideration.
Multiple reports suggest Trump has narrowed his selection to three or four final candidates. The president may announce his choice earlier than originally anticipated.
The relationship between Trump and Powell has deteriorated since January’s presidential inauguration. Trump has publicly criticized the Fed’s hesitancy to reduce interest rates. The president made several public statements expressing frustration with the current monetary policy direction.
On April 17, Trump declared that “Powell’s termination cannot come fast enough.” In support of the president’s position, Florida Senator Rick Scott stated that the Federal Reserve requires new leadership to address current economic challenges.
Bitcoin is trading at $114,973 at press time, showing a 0.26% drop over 24 hours and down 3.27% over the past week.
