All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- Economist Krüger recently stated on X that Bitcoin’s full upside won’t materialize until the Fed Chair nominee is announced.
- Jerome was named Federal Reserve Chair by Donald Trump in 2018, with his current term scheduled to end in May 2026.
Bitcoin investors are bracing for what could be one of the most pivotal moments of the year. A rate cut in September is looking increasingly likely, but economist Alex Krüger warns the crypto market isn’t fully pricing in the bullish potential just yet.
The real inflection point, he argues, won’t come until the White House formally announces a nominee to replace Federal Reserve Chair Jerome Powell.
The 47th US President, Donald Trump, who once leaned hard on Powell to deliver rate cuts, has now turned his attention to finding Powell’s successor. It’s a remarkable turn in a relationship that’s been fraught since the early days of Powell’s leadership.
Powell is a lawyer by training and not an academic economist like many of his predecessors. Powell was first tapped by then-President Donald Trump in 2018 to lead the Federal Reserve. But Powell’s relationship with Trump quickly soured. Trump frequently lashed out at him on social media, calling the Fed Chair “clueless” and even questioning whether he was a greater “enemy” than China’s Xi Jinping.
In 2022, President Joe Biden reappointed him, and the Senate confirmed him by another wide margin of 80–19. That placed Powell firmly at the helm of the Fed for a second four-year stint, set to run through May 2026.
A recent CNBC report revealed that the Trump team has compiled a list of 11 possible successors to Powell. Names floated so far include Jefferies’ David Zervos, BlackRock’s Rick Rieder, Fed Vice Chair for Supervision Michelle Bowman, Fed Governor Chris Waller, and Fed Vice Chair Philip Jefferson.
Other contenders reportedly under consideration are Marc Sumerlin, who served as an economic advisor in the Bush administration, Lorie Logan, president of the Dallas Fed, and former Fed Governor Larry Lindsey.
Bitcoin Waiting for a Trigger
For now, all eyes turn to Powell’s speech at Jackson Hole on Friday. Krüger sees the potential for a hawkish tone: “I lean slightly bearish into it, as a hawkish speech makes sense to reduce the odds of a September cut. The Fed wants to retain optionality and not let the market push itself into a corner.”
Still, he acknowledged that the Fed has shifted more dovishly in recent weeks, particularly after softer payroll numbers. That view is shared by much of the market, with 83.9% of traders pricing in a rate cut, according to the CME FedWatch Tool.
Bitcoin finds itself at a crossroads, struggling to gain momentum without the usual boost from leverage or a clear catalyst. Alex Krüger points out that the asset is clinging to its trendline from the April lows, waiting for a spark to break higher. For traders, that spark could come from Powell’s upcoming speech; if he signals even the slightest openness to easing policy in the face of economic stress, it may be all the market needs to trigger another surge of buying across digital assets.
As for Bitcoin’s trajectory, CNF reported that analysts remain split. The bullish camp sees dovish Fed policy combined with Exchange Traded Funds (ETF) inflows pushing BTC toward $123,700, while bearish voices warn of a potential pullback to $110,000. Currently, BTC is trading at $114,899 after a 3.28% drop in the past week.
