Crypto Market News Breaks: Will Trump’s Supreme Court Gambit Spark the Next Bitcoin Boom?

The battle lines are drawn—and the crypto market is watching.

In a political twist that feels more like a Netflix drama than a typical policy move, former President Donald Trump is seeking to remove Federal Reserve Chair Jerome Powell via the Supreme Court. And if you’re wondering what that has to do with crypto prices? Everything.

Let’s rewind.

It all started after Trump’s “Liberation Day” tariffs on April 2, targeting trade with over 100 countries, sent global markets into a spiral. On April 7, crypto wasn’t spared—Bitcoin and other digital assets plunged 10–20%, and liquidations topped $888 million. Markets were bleeding, and fear was everywhere.

But instead of backing off, Trump doubled down. With inflation dipping and investors begging for relief, he wanted the Fed to cut interest rates immediately. Powell refused.

Now, Trump wants him gone—and he’s taking it all the way to the Supreme Court.

Why Fire Powell—and Why Now?

Trump’s relationship with Powell has always been rocky, but things escalated fast. Despite a temporary 90-day pause on most tariffs (except for China, which now faces a crushing 145% tariff), the damage was done.

Markets were rattled. Investors were angry. Small businesses started to panic. Billionaire hedge fund manager Bill Ackman warned of severe fallout. Still, Powell stayed firm—holding rates steady to keep inflation under control.

Trump, never one to wait, reportedly petitioned the Supreme Court to challenge a decades-old precedent that shields Powell’s job. If the court agrees, Powell could be fired before his term ends in 2026.

What Does This Mean for Crypto?

On one hand, Powell has not exactly been a crypto cheerleader. In December 2024, a minor rate cut triggered a crypto bull run—but Powell didn’t follow up. On the flip side, he’s also defended crypto clients against unfair debunking.

So, would firing Powell be good for crypto?

If Trump replaces him with someone like Kevin Warsh, who’s more dovish and possibly more crypto-friendly, the Fed could slash rates sooner. And lower interest rates generally mean bullish momentum for Bitcoin, especially when inflation rises. Investors flee fiat—they flock to crypto.

But there’s a twist.

This move could destabilize the Fed’s independence. If markets start viewing the Fed as a political puppet, that might create new kinds of volatility—not just in stocks and bonds, but in Bitcoin as well.

In the short term? Volatility is crypto’s best friend. Every rate cut signal, every hint of instability, could boost BTC’s appeal as a hedge.

So… Bullish or Not?

This isn’t a simple win-or-lose for crypto. Trump’s broader stance on digital assets has been mostly positive, and the mere idea of a rate-cutting Fed chair could send Bitcoin flying. But challenging an independent institution like the Fed might backfire in ways that even crypto markets aren’t ready for.