Trump vs Powell: What This Fed Battle Means for Bitcoin

So Trump's economic adviser Larry Kudlow just said "President Trump's going to take the Fed over, as he should." This isn't some random speculation. Kudlow was Trump's top White House economic adviser, and he's basically confirming what many suspected about Trump's plans for the Federal Reserve.

The tension between Trump and Fed Chair Jerome Powell has been building for years. Trump was furious when Powell raised rates during his first term, and things got worse when Powell called post COVID inflation "transitory" while holding back on rate increases. Then Powell hit markets with a surprise 50 basis point hike right before the election, which some saw as helping Kamala Harris.

Here's where it gets interesting for bitcoin. Trump has already started making moves. He tried to remove Fed governor Lisa Cook and installed Stephen Miran, who's openly pro bitcoin, as a temporary Fed governor. The prediction markets( polymarket) had Trump removing Powell at 20% odds in July, though that's down to 5% now. Bitcoin's been responding to all this uncertainty in interesting ways. We hit resistance at $116,000, found support around $114,000, and gained 5% recently just on expectations that the Fed will cut rates this week. bitcoin seems to have found temporary balance until we get the FOMC results, but the real driver will be what the Fed signals about future cuts.

But are we missing the bigger picture here? Everyone's focused on whether we get a 25 or 50 basis point cut on Wednesday. Meanwhile, Trump's threatening to end Fed independence entirely. If he actually takes control of the Fed, what does that mean for bitcoin?

On one hand, Trump's been installing bitcoin supporters in Fed positions. A politically controlled Fed might be more crypto-friendly. On the other hand, destroying Fed independence could cause massive uncertainty in traditional markets. Would bitcoin benefit as a hedge against that chaos

The Fed's expected to prioritize the slowing job market over inflation concerns this week, which traditionally pushes more cash through the economy and into risk assets like bitcoin. But if Trump follows through on taking over the Fed, we're entering completely uncharted territory for monetary policy.

So what's your take? If Trump actually gains control over the Fed, does bitcoin moon as a hedge against political monetary policy, or do we see a massive selloff from the uncertainty? And should we be more worried about this Fed takeover talk than about whether we get 25 or 50 basis points this week?