Trump Prepares Jerome Powell's Substitute, Could Trigger Crypto Surge

JAKARTA - Reku analyst, Fahmi Almuttaqin, stated that cutting the Fed's interest rate will increase market liquidity and encourage the entry of fresh funds into the crypto market.

Bitcoin, which was traded in the range of US$108,000 (Rp1.75 billion) on July 1, showed that cryptocurrencies had responded to the stock market euphoria.

"However, crypto investors must remain cautious about potential corrections, especially those that can be caused by the dynamics of US tariff policies and uncertain future developments in economic data," Fahmi said in his statement.

But interestingly, amid current developments, President Trump also stated that he had compiled a brief list of 3-4 candidates to replace the current Fed leader.

"The candidates that are in consideration include Kevin Warsh, Christopher Waller, Scott Bessent, Kevin Hassett, and David Malpass, are names known as pro-suction rates," he explained.

Trump is also rumored to have written a live note to Fed Chairman Jerome Powell regarding urging him to drastically lower interest rates by about 1%. Because according to him, high interest rates have cost the US economy.

"This certainly has the potential to increase the dynamics in the future in terms of policy makers which will affect the volatility of the crypto market", said Fahmi further.

However, Fahmi stated that the potential for the appointment of Fed leaders who are more dovish or soft on interest rates through figures such as Scott Bessent or Kevin Warsh has the potential to provide a strong boost to risky assets, including cryptocurrencies and US shares.

The initial consensus showed that the news had weakened the US dollar. If interest rates are then lowered more quickly, for example in July, this would be a development that would be quite surprising and potentially trigger a spike in the crypto market," he concluded.