President Donald Trump announced a significant appointment of Stephen Miran to the Federal Reserve, immediately impacting the cryptocurrency market.
Stephen Miran's Appointment to the Fed
President Trump announced the appointment of Stephen Miran to the Federal Reserve Board via his Truth Social platform. Miran, currently the chairman of the Council of Economic Advisers, will fill the seat left vacant by Adriana Kugler until January 31, 2026. He is known for his support of Bitcoin and previously served in the Treasury Department under Trump's first administration.
Market Reaction to the Appointment
Following the announcement, the appointment positively influenced the cryptocurrency market. Bitcoin instantly gained 2%, surpassing the $117,500 mark. This increase reflects rising investor optimism regarding the potential for a more accommodative monetary policy. Greg Magadini, director of derivatives products at Amberdata, noted that 'He [Miran] is expected to be dovish, which is what Trump wants.'
Risks of Political Influence on Fed Independence
Despite the market's positive response, Miran's appointment raises questions about the independence of the Federal Reserve. Greg Magadini warns of risks associated with drastic directional changes: 'If the Fed loses its independence and ability to fight inflation, this starts to look like a mini 1970s moment.' He highlights that current conditions may lead to an increase in cryptocurrency prices, particularly if the market becomes worried about inflation.
Stephen Miran's appointment to the Federal Reserve underscores a further integration of Bitcoin into the American financial system. While this appointment opens new opportunities for cryptocurrencies, it also raises concerns about the independence of the central bank.
