Senator Elizabeth Warren has sounded a warning to US President Donald Trump about firing Fed Chair Jerome Powell. The Senator believes such action will crash the stock market, while it is also possible that the crypto market could follow suit.
Elizabeth Warren Says Trump Firing Powell Will Crash Stock Market
In a CNBC interview, Senator Warren, a member of the Banking Committee, stated that the stock market would crash if US President Donald Trump were to fire Fed Chair Jerome Powell. She explained that the Fed’s supposed independence is the infrastructure that keeps the market strong.
As such, if Trump were able to fire Powell, this would erode the US Central Bank’s independence and send a message to market participants that politics can influence the Fed’s economic decisions, which is bearish for the markets.
Warren’s warning is significant because the crypto market could also follow suit if the stock market were to crash following Powell’s termination. IntoTheBlock data shows that the Bitcoin price has a 0.63 correlation with the S&P 500, indicating a strong positive correlation between BTC and stocks.
Therefore, crypto assets, led by Bitcoin, could witness another crash alongside the stock market if Trump fires Powell. The US president has hinted over the past few weeks that he is looking forward to the Fed Chair’s departure. However, traders are betting against Trump firing Powell this year.
Other Reasons To Still Be Bullish
While discussions grow on whether Trump will fire Powell or not, there are still other reasons to be bullish on the Bitcoin price and the broader crypto market. As CoinGape reported, the US president recently signaled a potential end to the US-China trade war, which is bullish for the market, seeing the negative impact tariffs have had so far.
Meanwhile, the US continues to push for a ceasefire in the Russia-Ukraine war. Although it seems no progress has been made so far, Trump’s insistence could eventually pay dividends with Putin and Zelensky reaching an agreement.
From a technical analysis perspective, crypto analyst Titan of Crypto also suggested that BTC and altcoins may have bottomed out. He noted that BTC is holding well at a key support, while some are already calling it “dead”.
His accompanying chart indicated that BTC could soon reclaim the $100,000 price level. The broader crypto market is expected to rebound alongside the flagship crypto if this happens.
The post Elizabeth Warren Warns Stock Market Will Crash If Trump Fires Powell, Will Crypto Market Crash Too? appeared first on CoinGape.
