Trump Appoints Pro-Bitcoin Voice to the Fed, Markets Surge

Donald Trump strikes again. After opening 401(k) retirement plans to alternative assets like bitcoin, he appoints Stephen Miran, a pro-Bitcoin economist, to the Federal Reserve board. A move welcomed by the crypto market, propelling BTC beyond 117,500 dollars.

An appointment that changes the game for Bitcoin

President Donald Trump surprised on Thursday by announcing on Truth Social the appointment of Stephen Miran to the Federal Reserve board. 

This seasoned economist, currently chairman of the Council of Economic Advisers, will fill the seat vacated by Adriana Kugler until January 31, 2026.

Moreover, Miran is no stranger to the crypto ecosystem. A former Treasury Department official under the first Trump administration, he has publicly expressed support for bitcoin on several occasions. This recognized expertise earns him the president’s praise, who describes his economic skills as “unmatched.”

The market reaction was immediate. Bitcoin instantly gained 2%, crossing the symbolic $117,500 mark. This rise reflects investors’ optimism regarding this strategic appointment.

Greg Magadini, director of derivatives products at Amberdata, explains this euphoria to Decrypt:

He’s expected to be dovish, which is what Trump wants. The market reaction seems to think so.

This momentum perfectly fits Trump’s crypto strategy. After authorizing the inclusion of bitcoin in 401(k) retirement plans, the president continues to reshape the American financial landscape. These combined measures create a favorable environment for cryptocurrencies.

The risks of a politically influenced Fed

Despite market enthusiasm, this appointment raises important questions about the Federal Reserve’s independence. Greg Magadini warns of structural risks from too radical a change in direction.

“If the Fed loses its independence and ability to fight inflation, this starts to look like a mini 1970s moment”, the analyst warns. 

This historical reference echoes the period when the abandonment of the Bretton Woods system caused gold prices to explode, from $35 an ounce in 1970 to $700 in 1980.

Today, several signals reinforce this parallel. US Treasury bond auctions show weak demand, gold continues to rise, and inflation remains persistent, with a PCE indicator at 2.6%, above the Fed’s 2% target.

These converging signals fuel fears of inflation returning. In this context, a less independent Fed may struggle to maintain its credibility and effectiveness in fighting rising prices.

Yet, Magadini identifies a unique opportunity for cryptos:  

This tells me the market views all this as inflationary. I think crypto has a lot of room to move higher if the market becomes more worried about inflation.

He recalls that the total crypto market capitalization remains modest compared to traditional assets, with NVIDIA alone worth more than all 5,000 existing cryptos combined.

In short, with Miran at the Fed, Trump strengthens his push to anchor bitcoin in the workings of American finance. Between regulatory openness, potential capital inflows, and supply shortages, the ground seems ripe for a rise in BTC prices.