Bitcoin Braced for Apocalyptic Price Shock After White House Confirms Fed Bombshell
The bitcoin price has been treading water in recent days, amidst market chaos sparked by US President Donald Trump’s trade war. The ongoing uncertainty has led to a flight from risk assets, including cryptocurrency, and has raised concerns of a potential "U.S. dollar confidence crisis." According to a report by Forbes, the White House has confirmed that Trump is exploring whether he can fire Federal Reserve chair Jerome Powell, a move that could trigger an "apocalyptic scenario" for markets.
In a statement, Kevin Hassett, Trump’s economic adviser, told reporters at the White House that "the president and his team will continue to study that matter," when asked if firing the Fed chair was an option and if Trump has the authority to remove Powell. This comes after Trump posted to his Truth Social account that "Powell’s termination cannot come fast enough" following Powell’s reiteration of his intention to keep interest rates on hold due to uncertainty over Trump’s tariff trade war.
The possibility of Powell’s dismissal has raised concerns among investors and analysts, with Bilal Hafeez, chief executive of investment research company Macro Hive, telling The Telegraph newspaper that "it would be a huge, huge shock… Overall, it would almost be like an apocalyptic scenario for the market." The bitcoin price has plummeted from its January peak of almost $11,000 per bitcoin, dropping along with the stock market, as crypto hurtles toward a $19 trillion "tipping point."
As billionaire Ray Dalio warns that the US is teetering on the verge of a financial crisis and recession that could be worse than 2008, investors are seeking safe-haven assets. However, the bitcoin price has diverged from gold, which has rocketed to all-time highs as traders flee to the traditional safe haven. Some have predicted that bitcoin will ultimately benefit and begin trading as "digital gold." Lark Davis, a bitcoin and crypto investor, wrote in his Wealth Mastery newsletter that "Powell continues to sit on the fence with the ‘we’ll wait and see’ approach because he still believes tariffs will lead to higher inflation."
Davis added that "only time will tell but firing Powell risks bringing even more uncertainty to markets. However, intervention of some kind will be needed at some point, whether it’s rate cuts, quantitative easing or Trump softens. Or a mix. It’s a matter of when, not if." The ongoing market uncertainty has led to a surge in interest in cryptocurrencies, with some investors seeking alternative assets to traditional stocks and bonds.
In related news, influential Democratic Party senator Elizabeth Warren has warned that Trump could try to fire Powell, ominously stating that "nobody is safe." The situation is being closely watched by investors and analysts, who are bracing for a potential apocalyptic price shock in the bitcoin market. As reported by Forbes, the White House’s confirmation of Trump’s plans to explore firing Powell has raised concerns of a potential market meltdown.
The implications of such a move are far-reaching, and investors are advised to stay informed and up-to-date on the latest developments. According to Forbes, the situation highlights the need for investors to be prepared for any eventuality and to consider diversifying their portfolios to mitigate potential risks. As the situation continues to unfold, one thing is clear: the bitcoin price is braced for a potential apocalyptic shock that could have far-reaching consequences for the entire financial market.
Source: https://www.forbes.com/sites/digital-assets/2025/04/20/bitcoin-braced-for-apocalyptic-price-shock-after-white-house-confirms-fed-bombshell/
