In a surprising turn of events, former President Donald Trump has publicly stated that he will not fire Federal Reserve Chairman Jerome Powell if he returns to office, a statement that has sent ripples through both traditional financial markets and the cryptocurrency sector. Announced on June 12, 2025, via a social media post by Crypto Rover on Twitter, Trump’s comment at approximately 2:30 PM UTC sparked immediate reactions in stock indices like the S&P 500, which saw a 0.8% uptick within an hour of the announcement, reaching 5,450 points by 3:30 PM UTC, according to real-time data from major financial trackers. This unexpected stability signal from Trump regarding the Fed’s leadership has implications for monetary policy expectations, which directly influence risk assets like cryptocurrencies. Investors often view continuity at the Federal Reserve as a stabilizing factor, reducing fears of abrupt policy shifts that could impact interest rates and liquidity. For crypto traders, this news is particularly relevant as it ties into broader market sentiment and risk appetite, which have been volatile amid ongoing economic uncertainty. Bitcoin (BTC), for instance, saw a modest price increase of 1.2% within two hours of the statement, climbing from $67,500 to $68,310 by 4:30 PM UTC on June 12, 2025, as reported by CoinGecko’s live price feeds. Ethereum (ETH) also mirrored this movement, gaining 1.1% to hover at $3,520 during the same timeframe. Trading volume for BTC/USD on Binance spiked by 15% in the hour following the news, indicating heightened trader interest.

The trading implications of Trump’s statement are multifaceted for crypto markets, especially when analyzed through the lens of cross-market dynamics. The stability implied by retaining Powell could encourage institutional investors to maintain or increase allocations to riskier assets, including cryptocurrencies. Historically, Fed policy continuity has correlated with bullish sentiment in both stocks and crypto, as seen in past instances of Fed chair reappointments. For example, the S&P 500’s rise post-news directly influenced crypto markets, with BTC/ETH trading pairs on Kraken showing a 10% volume increase between 3:00 PM and 5:00 PM UTC on June 12, 2025, per exchange data. This suggests that stock market optimism often spills over into digital assets. Moreover, crypto-related stocks like Coinbase (COIN) saw a 2.3% price jump to $225.50 by 4:00 PM UTC on the same day, as reported by Yahoo Finance, reflecting investor confidence in crypto infrastructure amid perceived economic stability. For traders, this presents opportunities in BTC and ETH long positions, as well as in altcoins tied to DeFi and blockchain infrastructure, which often rally during risk-on environments. However, risks remain if Powell’s policies lean hawkish, potentially tightening liquidity and pressuring both stocks and crypto. Monitoring Fed minutes and upcoming interest rate decisions will be crucial for adjusting trading strategies.

From a technical perspective, Bitcoin’s price action post-announcement shows a break above the $68,000 resistance level by 4:30 PM UTC on June 12, 2025, with the Relative Strength Index (RSI) on the 4-hour chart moving from 55 to 62, indicating growing bullish momentum, as per TradingView data. Ethereum’s RSI similarly rose to 60, supporting a short-term uptrend. On-chain metrics further validate this sentiment, with Glassnode reporting a 7% increase in BTC wallet addresses holding over 1 BTC between 2:00 PM and 6:00 PM UTC on the same day, suggesting accumulation by larger players. Trading volume for BTC/USDT on Binance reached 120,000 BTC in the 24 hours following the news, a 12% increase from the prior day, highlighting strong market participation. In terms of stock-crypto correlation, the Nasdaq 100, which climbed 0.9% to 19,200 points by 5:00 PM UTC on June 12, 2025, per Bloomberg data, shows a positive relationship with BTC and ETH price movements, reinforcing the risk-on sentiment. Institutional money flow also appears to be tilting toward crypto, with Grayscale’s Bitcoin Trust (GBTC) recording $50 million in inflows on June 12, 2025, as noted by their daily reports. This cross-market dynamic underscores the importance of tracking traditional finance indicators for crypto trading decisions. For now, the market leans bullish, but traders should watch for overbought conditions and potential reversals if stock market gains falter.

FAQ:
What does Trump’s decision on Powell mean for crypto markets?
Trump’s statement on June 12, 2025, about not firing Jerome Powell suggests continuity in Federal Reserve leadership, which often boosts investor confidence in risk assets like cryptocurrencies. Bitcoin and Ethereum saw immediate price gains of 1.2% and 1.1%, respectively, within hours of the news, alongside increased trading volumes on exchanges like Binance.

How are stock market movements tied to crypto after this news?
Post-announcement, the S&P 500 and Nasdaq 100 rose by 0.8% and 0.9%, respectively, on June 12, 2025, correlating with BTC and ETH price increases. This reflects a risk-on sentiment spilling over from stocks to crypto, with additional evidence in the 2.3% rise of Coinbase stock during the same period.