Crypto Climbs on Talk of Fed Leadership Change and Growing Scrutiny of Powell

Bitcoin Breaks $120K as White House Pushes for New Fed Leadership

Bitcoin surged past $120,000 for the first time ever over the weekend, amid growing political drama in Washington. Speculation is swirling that pressure on U.S. Federal Reserve Chair Jerome Powell could spark changes in monetary policy—fueling optimism across crypto markets.

Powell Under Political Siege

President Donald Trump and his team have increasingly criticized Powell since the 2024 election. Although Powell delivered aggressive rate cuts ahead of the vote, he pivoted to a hawkish stance afterward—a move that’s drawn Trump’s ire.

“Frankly, it’s about breaking some heads,” said former Fed Governor Kevin Warsh on Fox News, accusing the Fed of losing focus, partly pointing to its controversial $2.5 billion renovation project. Warsh is widely viewed as a contender to replace Powell.

Another potential candidate, National Economic Council Director Kevin Hassett, confirmed over the weekend that the White House is exploring the legal path to remove Powell, stating: “It’s being looked into… If there’s cause, the president certainly has authority.”

Renovation Costs Under Scrutiny

At the center of the dispute is the Fed’s expensive renovation. OMB Director Russ Vought has demanded answers from Powell, questioning the costs and transparency of the project. The Fed published a new FAQ page over the weekend in an effort to explain its position.

Trump didn’t mince words either: “Jerome Powell has been very bad for our country,” he said. “We should have the lowest interest rate on Earth, and we don’t. He just refuses to do it.”

He also criticized the renovation project’s cost overruns, emphasizing it started under President Biden.

Crypto Eyes Potential Upside

Beyond interest rates, crypto markets are watching for potential regulatory shifts if Powell steps down. Powell has generally maintained a neutral stance toward bitcoin, viewing it more like gold than a currency, but he’s repeatedly called for clearer rules around stablecoins and financial stability.

A new Fed chair could bring policy changes that crypto investors would welcome—especially amid renewed momentum in the digital asset space.

The Takeaway

As political heat intensifies on Powell, Bitcoin’s rally signals how closely crypto markets are tracking Washington’s every move. If the Fed leadership changes, traders see potential for looser policy and a friendlier regulatory environment—a combination that could push crypto prices even higher.