Bitcoin Prepares to Change the Federal Reserve as Trump Targets Powell Bitcoin remains steady on Friday as traders prepare for a potential restructuring at the Federal Reserve. Reports suggest that U.S. President Donald Trump is preparing to replace Federal Reserve Chairman Jerome Powell, a move that could alter the Central Bank's approach to interest rates and liquidity in the crypto market. The Dow Jones index rose by more than 300 points mid-week, and the impact also spread to the crypto market - where Bitcoin increased slightly to around 106,950 before dipping slightly. The crypto market considers this a signal. If Powell is pushed to support someone more open to lowering interest rates, high-risk assets like Bitcoin and Ethereum could benefit. The U.S. dollar fell to its lowest level in three years and bond yields dropped, reinforcing the sentiment that easy money may be close. For cryptocurrency investors, this is a setup worth following. Trump may overhaul the Federal Reserve Reports from several sources indicate that Trump is seriously considering replacing Powell before his term ends in 2026. Although no official announcement has been made, sources have reported that Trump has discussed potential candidates with his advisors. His criticism of Powell's policies is not new, but the recent increase in inflation fears and pressure in an election year could push things forward. The market reaction was immediate. Traders began pricing in the Federal Reserve's more moderate policy, which typically means lower interest rates and increased liquidity. This would be good news for cryptocurrencies, which have been stagnant under tighter monetary conditions over the past year. Bitcoin, often used as a hedge against the erosion of fiat currency value, tends to rise in price when the dollar declines and interest rates fall. Bitcoin's price reacts cautiously Bitcoin traded at a level of 106,950 on Friday, with a daily high of 107,250 and a low of 106,145. This is not a significant achievement, but it is a clear sign that interest is increasing, as Ethereum and other major cryptocurrencies also experienced similar silent price movements. Traders are acting cautiously, knowing that talking about replacing the Federal Reserve Chairman is one thing, but actual implementation is another. Leading stocks and dependent cryptocurrencies began the optimistic sentiment alongside stocks. The Dow rose by more than 300 points, while the S&P 500 and Nasdaq also closed higher. Tech stocks led the rally, buoyed by falling Treasury yields and hopes that interest rate hikes are no longer on the table. This optimism has transferred to the crypto market, where risk sentiment plays a significant role. The crypto market turns towards Washington There are still many uncertainties. Powell is still in office and no official alternative has been mentioned. But the fact that President Trump is contemplating this idea has changed the market. Investors in the crypto market are particularly sensitive to shifts in macroeconomic expectations, and this could represent a significant change.