Is it True that Bitcoin (BTC) Price will Peak if Powell is Fired?

The crypto market just got a fresh jolt of excitement, and surprisingly, it’s not from a blockchain upgrade or a new ETF approval. Instead, it’s politics that’s fueling Bitcoin’s latest rally. 

Recently, Bitcoin (BTC) surged to over $88,400, marking one of its strongest rallies since April. The reason? Renewed speculation that Donald Trump might move to fire Federal Reserve Chairman Jerome Powell, a headline that sent the U.S. dollar tumbling and crypto prices rising.

With rising questions about the institutional Bitcoin price, many investors are wondering: Could Powell’s potential dismissal become a catalyst for BTC to reach new highs? Let’s break it down.

Bitcoin Price Rallies While the Dollar Wobbles

As tensions rise in the White House over the Federal Reserve’s independence, the dollar is showing weakness, and Bitcoin is responding accordingly.

Trump’s open frustration with Powell isn't new. He has often criticized Powell’s handling of interest rates, arguing that the Fed should cut rates more aggressively to stimulate the economy. 

Now, with rumors swirling that Trump is exploring legal avenues to remove Powell from his post, the markets are reacting.

According to Bloomberg, BTC jumped 3.9% early Monday, reclaiming ground lost during previous geopolitical turmoil. While Wall Street stumbled and the dollar slid to its lowest level since January 2024, Bitcoin stood firm, reinforcing its appeal as a hedge against uncertainty.

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Bitcoin Price Surges: New Kind of Safe Haven

This latest surge in Bitcoin price comes as gold also hit a new record high. Both assets are typically seen as stores of value during economic uncertainty. 

But while gold has long been the go-to hedge, Bitcoin is now stepping into that role more prominently, particularly for tech-savvy and institutional investors.

Many are starting to ask, could Bitcoin’s resilience in the face of economic turbulence indicate a shift in how institutions approach crypto?

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Signs that Institutions are Warming Up to Bitcoin:

1. Record-breaking ETF inflows earlier in the year.

2. Stablecoin demand surging, especially in countries with volatile fiat currencies.

3. Increased exposure from hedge funds and family offices, treating BTC as a macro hedge.

With discussions around Powell’s job security adding another layer of instability, the institutional Bitcoin price could be entering a new, more bullish chapter.

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A Lesson from Turkey

If Trump does move to fire Powell, it wouldn’t be the first time a political leader tried to meddle with monetary policy. Turkey provides a striking example. 

Since President Erdogan began interfering with the Turkish central bank in 2019, the lira has collapsed more than sevenfold, from 5.3 per dollar to over 38 per dollar by 2025.

Each intervention, including the dismissal of multiple central bank governors, only further eroded investor confidence. Inflation remained high, and Turks increasingly turned to Bitcoin and stablecoins as an alternative store of value.

While the U.S. is far from a lira-style collapse, Powell’s removal could shake the foundation of confidence in the U.S. dollar. If international markets sense that the Federal Reserve has become a political puppet, capital could start fleeing, not unlike what happened in Turkey.

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Bitcoin Price After Powell's Exit

Bitcoin is designed to be decentralized, censorship-resistant, and immune to political manipulation, the exact opposite of fiat systems dependent on central banks.

If the Fed’s independence is compromised, here’s what could happen:

1. Declining Trust in the U.S. Dollar

As the dollar continues to drop, investors might look for alternative assets to store value.

2. Capital Flight From Traditional Markets

International investors may reduce exposure to U.S. Treasury bonds and stocks, shifting to gold, Bitcoin, and other alternative assets.

3. Institutional Accumulation of BTC

Large investors could view Bitcoin as a hedge against dollar debasement, driving demand and lifting prices.

4. Bitcoin’s Global Use Case Strengthens

As BTC proves its resilience during moments of political instability, its reputation as a global asset could grow.

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Institutional Bitcoin Price

We’re entering a politically charged phase in the U.S. economy, and Bitcoin’s behavior shows that it is no longer just a speculative bet, it’s evolving into a global macro asset.

If Trump moves forward with plans to fire Powell, and the Fed is seen as losing its independence, the demand for BTC from both retail and institutional investors could surge. In that scenario, we may not be far from seeing a new all-time high.

Of course, this doesn’t guarantee that Bitcoin will skyrocket overnight. But it does suggest that macro factors, not just halving cycles or ETF launches, will play a major role in shaping the institutional Bitcoin price in the coming months.

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Conclusion

The short answer is potentially, yes. Powell’s removal could trigger a loss of trust in the Federal Reserve and U.S. financial systems. If history from countries like Turkey tells us anything, such scenarios often lead to increased adoption of decentralized assets like Bitcoin.

For now, Bitcoin price strength, despite Wall Street losses and dollar weakness, is a loud signal that the crypto asset is maturing, and becoming more aligned with global macroeconomic trends.

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FAQ

Will Bitcoin price rise if Powell is fired?

While nothing is guaranteed, Powell’s removal could destabilize the U.S. dollar, increasing the appeal of Bitcoin as a hedge, particularly among institutional investors.

Why does the dollar dropping help Bitcoin?

A weaker dollar often leads investors to seek stores of value that are not tied to fiat currencies, such as gold and BTC.

Is Bitcoin truly a safe-haven asset now?

It’s becoming one. Bitcoin’s correlation with traditional markets is decreasing, and its appeal as a hedge against inflation and political uncertainty is growing.

What is the Institutional Bitcoin Price?

This refers to the valuation and market behavior of Bitcoin based on institutional investment flows, as opposed to retail speculation. It's influenced by macroeconomic policies, geopolitical risks, and fund allocations.