Bitcoin 
$76,351 recently plummeted to $117,660, casting a shadow over the cryptocurrency market. This downturn arrives amidst a geopolitical shake-up as Donald Trump expresses his dissatisfaction with the current Fed Chair, Jerome Powell. Trump’s dissatisfaction is primarily due to Powell’s refusal to reduce interest rates, prompting demands for Powell to vacate his position months before his term concludes.
Investigation into the Fed Chair
Representative Anna Paulina Luna, a Republican from Florida, has called for an investigation of Jerome Powell by the Department of Justice. Luna alleges that Powell lied under oath twice since taking office. According to Fox News, the letter to the DOJ is seen as a significant move by the Republican Party against the Federal Reserve Chair.
“On June 25, 2025, Chairman Powell testified under oath before the Senate Banking Committee about the renovation of the Federal Reserve’s Eccles Building. During his testimony, he made several significant misrepresentations. In a letter to OMB Director Russell Vought, Powell downplayed the cost increase of the project from $1.9 billion to $2.5 billion. However, congressional investigators found neither the scope nor the budget overruns of the project were trivial.” – Complaint Letter to the DOJ
Potential Political Repercussions
There have been discussions about using the ongoing renovation of the Federal Reserve buildings as grounds for removing Powell. Last week, details of these allegations and the Fed’s response were shared, alongside Trump’s plans with lawmakers to remove Powell. Despite Powell’s dismissal of these claims, the situation remains tense, with attention on his actions rather than his statements.
Should the Department of Justice find Powell guilty, Trump could swiftly replace him with someone more lenient towards interest rate cuts. Such a move could lead to the Fed losing its independence and becoming politicized, potentially causing chaos in global markets and triggering further declines in the cryptocurrency sector.
