Bitcoin may be affected if Trump fires Powell, Pompliano warns

Cryptocurrency investor Anthony Pompliano has warned that the firing of Federal Reserve Chairman Jerome Powell could set a dangerous precedent, particularly for cryptocurrency investors and Bitcoin. In a video posted on X, Pompliano responded to Donald Trump's post on Truth Social from April 17, in which the former U.S. president stated, "The firing of Powell can't happen fast enough!" Trump accused Powell of being too slow in cutting interest rates. Pompliano rebutted, saying, "I don't believe that the President of the United States should get involved and unilaterally fire the Chairman of the Fed." He added, "I think that's not the issue we really want to address when there are disagreements and then a firing." Lower interest rates often inject more liquidity into the market, which typically drives the prices of Bitcoin and other cryptocurrencies higher. However, Pompliano warns that removing Powell due to policy disagreements could create instability in the financial markets. Although Pompliano believes that the Fed is "highly politicized," he emphasizes that two wrongs do not make a right. "Just because someone else does something wrong doesn’t mean you should do something wrong too." Senator Elizabeth Warren also expressed concern, stating that firing Powell could undermine investor confidence and potentially collapse the market. Meanwhile, Powell recently acknowledged the growing importance of cryptocurrency, calling for a legal framework for stablecoins at an event on April 16 in Chicago. Due to the cryptocurrency market being closely tied to interest rates and regulations, any political changes at the Fed could have a significant impact on Bitcoin and beyond.