Rumors are doing rounds on the internet that Fed Chair Jerome Powell is set to resign today (June 1, 2025), and rate cuts are on the way. However, many X Users have dismissed these claims as baseless, as there is no official evidence to back them.
Massive Market Crash To Follow?
Some experts believe that the crypto market will see a parabolic run if the Fed Chair resigns, but any such event is unlikely as of now. However, if it were to happen, the financial markets would see a massive crash. This is because a sudden loss of leadership at the Federal Reserve would damage confidence in both the U.S. dollar and the broader economy.
They also pointed out the market’s negative reaction when President Trump had just expressed a desire to remove Powell.
Polymarket betters are also not buying the Powell resignation rumors. Despite the discussion on X, the odds on the Polymarket contract “Will Trump remove Jerome Powell in 2025?” held steady at 12%.
Just recently, Trump summoned Powell to the White House and criticised him for not cutting the interest rates. But Powell was firm on his decision, saying that the policy decisions will be based on economic data and not politics. The Fed has held rates steady at 4.25% to 4.50% for a third straight meeting.
Although Trump continues to push for rate cuts, in a recent interview, he said he has no plans to fire Powell, noting he’ll be able to replace him soon anyway, saying, “it’s in a very short period of time.”
Bitcoin Shows Resilience
Recently, the US Dollar crashed to a three-year low, and Wall Street was trading in red. Now, Bitcoin normally follows the Wall Street sentiment. However, this time it stood strong. So, with Bitcoin showing surprising strength, investors might be eyeing Bitcoin as a safer bet in times of chaos.
Some analysts note that Bitcoin does not need QE, saying that institutional adoption and regulations can drive the next bull run too. Bitcoin is currently trading at $104,967. Indicators show that the current rally may be nearing a short-term top. While it remains in a bullish trend, data from Cryptoquant shows that the market may be overheating.
