Bitcoin Climbs After Trump Appoints Crypto-Friendly Economist to the Fed – A New Era Ahead?

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Bitcoin regained momentum and surged close to $117,500 after former President Donald Trump surprised markets by appointing economist Stephen Miran to the Federal Reserve Board. Known for his favorable stance toward Bitcoin and looser monetary policy, Miran is set to serve until January 2026. Trump praised Miran’s “unmatched” economic expertise and reminded the public of his previous role at the Treasury during Trump’s first term. Miran has also made several public statements supporting Bitcoin and its potential role in modern finance.

Markets React: Bitcoin Up as Investors Anticipate Dovish Shift at the Fed Analysts interpret the nomination as a signal that the Fed might lean toward a more dovish stance — potentially lowering interest rates or easing its anti-inflation policies. Markets responded positively to this prospect. However, some experts warn of long-term risks. If the central bank loses its independence and succumbs to political pressure, it could echo the economic turbulence of the 1970s. Back then, the collapse of the Bretton Woods system — which tied currencies to the U.S. dollar backed by gold — led to runaway inflation and a gold surge from $35 to $700 per ounce. Today, similar red flags are flashing: rising gold prices, weak demand for Treasury auctions, and uncertainty around the Fed’s policy direction.

Crypto Still Undervalued – But Poised for Growth While Bitcoin is often called “digital gold,” the overall crypto market remains small compared to traditional financial assets. In fact, just one tech stock — NVIDIA — has a larger market cap than the entire crypto space combined. But that may signal tremendous growth potential. If inflation fears deepen, cryptocurrencies could become a much more appealing alternative for investors seeking a hedge.

#bitcoin , #TRUMP , #FederalReserve , #BTC , #Fed

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