The crypto market is exploding! Bitcoin just smashed its previous record, hitting nearly $118,000, and Ethereum surpassed $2,850. This is fueling serious optimism, with many believing a massive bull run is just beginning.
A Political Twist
Adding to the excitement (and uncertainty) are rumors that Federal Reserve Chairman Jerome Powell might resign. President Trump has been pushing for lower interest rates, something Powell hasn’t done. A new Fed chair could mean a big shift in monetary policy, hugely impacting investments, including crypto.
Fueling the Fire
William J. Pulte, a US housing official, even publicly stated he hopes Powell resigns, believing it would boost the economy. This added fuel to the already intense speculation surrounding Powell’s future. The bond market is reacting cautiously though, with yields rising.
What a New Fed Chair Could Mean
If Powell steps down, his replacement might be more in line with Trump’s vision, potentially leading to a significant interest rate cut. This would be a massive change, and could be amazing for risky investments like crypto. A more “dovish” Fed (one that favors lower interest rates) would likely create a perfect storm for crypto, potentially triggering a long bull run.
Market Cap on the Rise
The total value of all cryptocurrencies is nearing a record high, reaching $3.63 trillion. This is a huge weekly gain, and it’s looking very bullish. The market has shown consistent strength, bouncing back from dips and showing increasing trading volume. A break above $3.75 trillion would be a historic high. Bitcoin and Ethereum’s price increases are driving this surge, pulling other cryptocurrencies along for the ride.