A senior White House official indicated this week that President Donald Trump is likely to soon dismiss Jerome Powell from his position as Chairman of the Federal Reserve.
The information, reported by Bloomberg citing the unnamed official, underscores ongoing tensions between the Trump administration and the central bank leadership.
Such a potential change at the helm of the US Federal Reserve introduces significant uncertainty into monetary policy, a critical factor for global financial markets including cryptocurrencies.
Changes at the Fed can profoundly impact investor sentiment within the crypto sector, which is highly sensitive to interest rate expectations and broader economic stability.
Market participants are now assessing the potential for increased regulatory ambiguity and its effect on digital asset valuations and adoption should new leadership be appointed.