Bitcoin Holds Steady as Trump Threatens to Oust Fed Chair Powell

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Bitcoin Holds Steady as Trump: Despite the upheaval in the US political scene, it has surprised everyone to see how the cryptocurrency market has been resilient. This was after one of the statements made by the former president of the US, Donald Trump, which suggested that he would replace the Federal Reserve Chair Jerome Powell with someone else if he gets elected again. Thus, going into possible monetary policies, Bitcoin has remained relatively stable and around some critical support levels. It is, therefore, essential to ask the following questions: How does political uncertainty generally affect Bitcoin in particular? What possible effect would a change in Fed leadership have on these crypto markets?

And where does Bitcoin stand in such developments?

We will explore in this article the following themes:
The behind-the-scenes of Trump’s statements regarding Jerome Powell
The influence of Federal Reserve policy on Bitcoin
Why Bitcoin Pricing is Unchanged Against Political Risks
Historical precedents for leadership changes at the Fed and market responses
What does this mean moving forward for crypto investors

Trump’s Warning: A Potential Fed Shake-Up

Donald Trump, who is supposed to be the leading Republican candidate for the upcoming presidential elections in 2024, recently hinted that he would change Jerome Powell if he wins in November. Since he was appointed in 2018, his relationship with Powell has always been very contentious.

Key Quotes from Trump:

“He is political… He is lowering interest rates to assist the Democrats.”

“I think we ought to have a Fed which does what’s right for the country, not what’s right for the political party in power.”

Trump has hit at Powell previously for being sluggish in interest rate cuts; this is apparent mainly in an election year. The most recent comments further imply that he’d prefer a Fed Chair who has cognitive dissonance regarding his economic policies-opening the doors, therefore, for looser money policies.

Why This Matters for Markets

Federal Reserve is the most critical entity that shapes the economic policy of the US by controlling inflation and employment, and also the financial markets. Hence, an abrupt change in leadership may indicate:

More aggressive rate cuts (bullish for risk assets like Bitcoin).
Increased political influence over monetary policy (raising concerns about Fed independence).
Market volatility as investors adjust to new policy expectations.

How Fed Policy Impacts Bitcoin

Bitcoin is often called “digital gold” and a hedge against monetary instability. Economic scenarios where investors typically see Bitcoin as a hedge against inflation occur when the Fed has kept interest rates lower, or the quantitative easing has further printed money. Downward pressure tends to be prevalent on Bitcoin with the subsequent tightening of policy (interest rate hikes) by the Fed.

Recent Fed Actions & Bitcoin’s Response

2020-2021 (Pandemic Era): Near-zero rates and stimulus fueled Bitcoin’s bull run to $69,000.
2022-2023 (Rate Hikes): BTC crashed to $16,000 as the Fed fought inflation.
2024 (Rate Cuts Expected): Bitcoin rebounded to $70,000+ amid easing expectations.

If Trump replaces Powell with a more dovish (pro-stimulus) Fed Chair, it could lead to:

Weaker dollar → stronger Bitcoin
Higher inflation fears → Increased BTC demand
More liquidity in markets → bullish for crypto

However, if the move is seen as politically motivated, it could also undermine trust in the U.S. financial system, Coin E Tech – Latest News on Crypto details further boosting Bitcoin’s appeal as an alternative asset.

Why Is Bitcoin Holding Steady Despite the Uncertainty?

Given past reactions to Fed policy shifts, Bitcoin’s current stability is notable. Several factors explain this:

1. Market Already Pricing in Political Risk

Investors have grown accustomed to Trump’s rhetoric.
Many expect Fed policy to remain data-driven regardless of leadership.

2. Strong Institutional Demand

Bitcoin ETFs continue to see inflows, providing price support.
Large holders (whales) are accumulating, reducing volatility.

3. Macroeconomic Focus Shifts to Inflation & Rate Cuts

The Fed is still expected to cut rates in 2024, which is bullish for BTC.
Geopolitical risks (Middle East tensions, U.S. elections) drive demand for hard assets.

4. Bitcoin’s Decoupling from Traditional Markets

While stocks react to Fed speculation, Bitcoin increasingly moves on its cycles (halving, adoption trends).

Historical Precedents: Fed Changes & Market Reactions

Looking back at past Fed transitions can provide clues about potential outcomes:

Fed Chair Transition Market Reaction Bitcoin’s Response

Janet Yellen → Jerome Powell (2018) Short-term volatility, then bull market BTC crashed in 2018 (Crypto Winter)

Ben Bernanke → Janet Yellen (2014) Smooth transition, low volatility BTC was still niche but entered a bear market

Alan Greenspan → Ben Bernanke (2006) Housing bubble concerns, later financial crisis Bitcoin didn’t exist yet

Key takeaway: Fed transitions don’t always cause immediate chaos, but long-term policy shifts can shape Bitcoin’s trajectory.

What This Means for Crypto Investors

Short-Term Outlook (Next 6 Months)

Bitcoin may remain range-bound (
60K−
60K−75K) until Fed rate cuts begin.
Political noise could cause brief dips, but strong support exists.

Long-Term Implications (2025 and Beyond)

Should Trump prevail and install a dovish Fed Chair, Bitcoin will likely witness an exuberant coming-out party based on expectations of more money printing in the future.
If rates are cut as planned, BTC could rise even if Powell stays on.
A hawkish Fed surprise (delayed cuts) might spark a correction, but ETFs may soften the blow.

Strategic Moves for Traders

DCA (Dollar-Cost Average): Accumulate BTC on dips.
Monitor Fed Speeches: Powell’s tone shifts could signal policy changes.
Watch the Dollar Index (DXY): A weaker DXY typically helps Bitcoin.

Conclusion: Bitcoin as a Hedge Against Political Uncertainty

Trump’s threat to remove Powell creates uncertainty, but Bitcoin is stable; the market seems to be looking upward, far away from temporary political drama. The significant drivers are:

✔ Rate cuts from the Fed

✔ Adoption by institutions

✔ Scarcity of Bitcoin, as being subject to halving

Should the Fed ever become political, the case for Bitcoin as an apolitical and inflation-resistant asset might strengthen even more. For now, the best option would appear to behold – which is very much in keeping with Bitcoin.

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# Bitcoin Holds Steady as Trump

Ali Malik

Ali Malik is an experienced crypto writer specialising in simplifying complex blockchain and cryptocurrency topics for a broad audience. With expertise in ICOs, Web3, DeFi, NFTs, and regulatory updates, he offers valuable insights to help readers make informed decisions. He is proficient in SEO optimisation.

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Bybit Crypto Heist: $1.5 Billion Ethereum Stolen and Laundered

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Unbelievably, a significant attack involving the top Dubai-based crypto exchange, Bybit, has rocked the Bitcoin Market community. In early February 2025, a hack occurred, resulting in the theft of approximately $1.5 billion worth of Ethereum (ETH) from Bybit’s cold wallet.

More alarming is the fact that, only a few months following the incident, the attackers converted Ethereum to Bitcoin (BTC) to launder approximately $1.2 billion. This hack exposes the weakness of Bitcoin exchanges and raises significant questions about the ease with which stolen money can be moved and hidden within the cryptocurrency ecosystem.

Bybit Crypto Heist

The scope of the Bybit breach is unprecedented in the annals of Bitcoin theft. Thought to be members of North Korea’s Lazarus Group, the attackers used a flaw in a regular transaction between Bybit’s cold and warm wallets. While cold wallets serve as secure offline storage for cryptocurrency, warm wallets connect to the internet to facilitate simpler transactions. To direct the money to a rogue address, the attackers, however, tampered with the procedure. Overall, the attackers pilfered around 401,000 ETH, valued at roughly $1.5 billion at the time.

This heist exceeded earlier well-publicised crypto thefts, including the $611 million Poly Network hack in 2021 and the $620 million Axie Infinity hack in 2022. Given the enormous scope of the loss, it has raised grave questions regarding the security protocols in place at even the most significant exchanges worldwide.

Hackers Launder Funds

The hackers initiated a sophisticated money laundering operation immediately after acquiring the funds. Ben Zhou, the CEO of Bybit, revealed that the hackers quickly exchanged 83% of the stolen Ethereum, roughly 417,348 ETH, for Bitcoin (BTC). Thereafter, the hackers divided the money among 6,504 separate wallets, making it challenging for investigators to track them.

Using THORChain, a distributed liquidity system that enables cross-chain token exchanges, was one of the most common techniques hackers employed to launder money. The attackers moved the pilfered Ethereum into Bitcoin using this method; therefore, conventional centralised exchanges that might highlight dubious or suspicious behaviour handled approximately $900 million worth of ETH overall, which complicated attempts to track the perpetrators.

Stolen Ethereum Traced

Despite the hackers’ sophisticated laundering techniques, a significant portion of the stolen funds remains traceable. As of March 2025, forensic experts report that 77% of the stolen Ethereum has been successfully tracked on the blockchain. However, around 20% of the stolen funds have “gone dark,” making them untraceable. This scenario implies that a small percentage of the funds has likely been transferred to private wallets or otherwise obscured, making it more challenging for authorities to recover them.

Blockchain experts and law enforcement agencies are continuing to collaborate to track down the remaining funds. Many exchanges are also cooperating with these efforts to freeze accounts that might be involved in the laundering process. However, as the situation unfolds, it remains unclear how much of the stolen cryptocurrency will ultimately be recovered.

Bybit’s Security Response

Following the incident, Bybit took several steps to reassure its customers and continue operating. The trade emphasised that all other wallets remained safe, while the hack was limited to a single cold wallet. Bybit stated that all customer funds were fully backed and that the business remained solvent, thereby boosting user confidence.

Bybit also launched Lazarusbounty.com, a dedicated website to track laundered money. The portal seeks to be open and compile data on any possible leads. To further demonstrate its commitment to recovering the money, the exchange also announced a 10% reward for anyone who could assist in the recovery of the stolen funds.

Notwithstanding these initiatives, Ben Zhou, the CEO of Bybit, acknowledged that the business may not fully recover the stolen cryptocurrencies. Still, he reassured consumers that Bybit’s financial situation remained the same and the company would not go bankrupt. Ethereum’s price is down 24%, and Bitcoin is sliding below the $90,000 level in response to the announcement. The hack had a notable market impact.

Bybit Breach Impact

The Bybit breach has rocked the broader cryptocurrency market and sparked increased government investigations worldwide. Especially in terms of user fund protection, the loss exposes major flaws in the security system of Bitcoin exchanges. The loss has also highlighted the ease of transferring stolen goods over the blockchain. The situation thereby complicates the tracking of illegal activities.

Regulators are likely to intensify their efforts to enforce more stringent security rules and increased monitoring of cryptocurrency platforms. More strict Know Your Customer (KYC) and Anti-Money Laundering (AML) rules resulting from the hack could influence exchange operations and user identity verification processes.

Many analysts following the incident are advocating for a more centralised approach to Bitcoin control. Such an approach may offer greater transparency and monitoring. Decentralized finance (DeFi) systems offer enhanced privacy and freedom.

Final thoughts

The 2025 Bybit attack reminds us shockingly of the weaknesses still present in the Bitcoin ecosystem. Despite the advanced technology that underpins blockchain and cryptocurrencies, these weaknesses persist. The event highlights how readily hostile actors can exploit flaws in exchange security to launder stolen value.

The consequences of this hack are likely to impact both the regulatory landscape and the market. Stronger security policies will be required for cryptocurrency exchanges. The platforms need to prevent further hacks and safeguard their users from such risks. The events surrounding the Bybit breach could shape the direction of bitcoin control and security in the years to come as the sector develops.