The recent drop in Bitcoin's price to $117,660 coincided with criticism from former President Donald Trump regarding Federal Reserve Chair Jerome Powell.
Allegations Against Jerome Powell
Representative Anna Paulina Luna has led a call for the Department of Justice to investigate Jerome Powell. Luna accuses Powell of lying under oath on two separate occasions since his appointment. Fox News reports that this is seen as a strong stance by the Republican Party against the Federal Reserve Chair.
> "On June 25, 2025, Chairman Powell testified under oath before the Senate Banking Committee about the renovation of the Federal Reserve’s Eccles Building. During his testimony, he made several significant misrepresentations. In a letter to OMB Director Russell Vought, Powell downplayed the cost increase of the project from $1.9 billion to $2.5 billion. However, congressional investigators found neither the scope nor the budget overruns of the project were trivial." – Complaint Letter to the DOJ
Possible Political Outcomes
Leaders are discussing whether the ongoing renovation of Federal Reserve buildings could be used as a pretext to oust Powell. Details of the allegations were unveiled last week along with the Fed’s response and Trump’s strategy to potentially remove Powell. Although Powell dismisses these claims, the focus remains on his management rather than his defense.
Impact on the Cryptocurrency Market
If Powell is found guilty by the Department of Justice, Trump might quickly place a more sympathetic figure at the Fed’s helm, favoring interest rate cuts. This could compromise the Fed’s independence, risk market stability globally, and likely worsen the downturn in the cryptocurrency arena.
* The proposed investigation could impact Powell’s position significantly. * A power shift might lead to policy changes at the Federal Reserve. * Such moves could exacerbate instability in global markets. * The cryptocurrency market may see further fluctuations.
The situation remains tense, and the cryptocurrency sector continues to be under pressure, influenced not only by market forces but also by political maneuvers. All eyes are now on the Department of Justice and Jerome Powell's next moves as global stakeholders weigh the potential consequences.
