In short
- Trump has tapped Bitcoin-friendly economist Stephen Miran for a chair in the Federal Reserve Board.
- Bitcoin rose by 2%and at the top $ 117,500, because traders expect it to be fed a looser -fed policy under Miran.
- Nevertheless, an analyst warns that the credibility of the Fed can hollow, which can be repeated in the inflation risks of the 1970s.
Bitcoin shaken off the market jiters of last week to get a foothold near $ 117,500, after the surprise of President Donald Trump by economist Stephen Miran for the Federal Reserve Board.
In a statement on Thursday about Truth Social, Trump said that Miran, who is currently chairman of the Council of Economic Advisors and a well -known Bitcoin supporter, would fill a chair that was left by Adriana Kugler last week and served until January 31, 2026.
Trump called Miran’s economic expertise “unparalleled” and said that he “has served” during the first Trump administration in 2016.
Miran served at the Ministry of Finance at that time and has written publicly several times to support Bitcoin.
Greg Magadini, director of derivatives at Amber Data, said that traders interpret the appointment of Miran as a shift to easier policy of a federal reserve that has had to deal with increasing pressure from the Trump government.
“He is expected to be Dovish, what Trump wants,” said Magadini Decrypt. “The market reaction seems to think so.”
At the same time, Magadini warned of deeper structural risks if the FED shifts in favor of Trump.
“If the Fed loses its independence and the ability to combat inflation, this starts to look like a mini moment from the 70s,” he said. “In the 1970s, the end of Bretton Woods Gold from $ 35/OZ sent in 1970 to $ 700/OZ in 1980. The current environment – Poor Treasury auctions, rising gold prices and uncertainty around Fed Policy – runs parallel.”
The Bretton Woods system was a global global monetary order after the Second World War that held currencies to the US dollar, which was convertible to gold. The Bretton Woods system, which founded the IMF and the World Bank, lasted until the shift to floating exchange rates in 1973.
Magadini said that investors keep a close eye on Fed signals, because inflation remains stubborn. The last PCE lecture was 2.6%, above both the target of 2%of the FED and the previous average of three months of 2.3%.
“American treasury auctions have demonstrated a weak demand in recent weeks and the gold prices have continued to rise,” he said. “This tells me that the market regards all this as inflation.”
Although Bitcoin is often called ‘digital gold’, Magadini noted that the total market capitalization of the entire cryptomarkt remains small compared to traditional assets.
“Nvidia alone is worth more than all crypto market hairstyles – that is more than 5,000 cryptocurrencies, and one share is worth more than all,” he said. “I think Crypto has a lot of room to move higher if the market is more concerned about inflation.”
Daily debrief Newsletter
Start every day with the top news stories at the moment, plus original functions, a podcast, videos and more.
