Bitcoin Soars as President Trump Taps Pro-Crypto Economist Stephen Miran for Federal Reserve Role
Bitcoin Soars as President Trump Taps Pro-Crypto Economist Stephen Miran for Federal Reserve Role
Bitcoin has seen a significant surge, reclaiming ground near $117,500, following President Donald Trump’s unexpected appointment of economist Stephen Miran to the Federal Reserve Board. The move, announced Thursday on Truth Social, sees Miran – a known advocate for Bitcoin and current chairman of the Council of Economic Advisors – filling a vacancy on the board until January 31, 2026.
Trump lauded Miran’s “unparalleled” economic expertise, noting his distinguished service during the first Trump administration in 2016 within the Treasury Department, where he also publicly supported Bitcoin on multiple occasions.
Market analysts are interpreting Miran’s appointment as a signal towards a more accommodative monetary policy from the Federal Reserve, which has faced increasing pressure from the Trump Administration. Greg Magadini, director of derivatives at Amberdata, commented, “He’s expected to be dovish, which is what Trump wants. The market reaction seems to think so.” This sentiment aligns with a recent influx of $91.6 million into Bitcoin ETFs, breaking a four-day outflow streak.
However, Magadini also cautioned about potential structural risks if the Fed’s independence is compromised, drawing parallels to the 1970s. “If the Fed loses its independence and ability to fight inflation, this starts to look like a mini 1970s moment,” he warned, citing the dramatic rise in gold prices post-Bretton Woods. He added that ongoing weak U.S. Treasury auctions and climbing gold prices suggest the market perceives the current environment as inflationary, with the latest PCE reading at 2.6%, above the Fed’s 2% target.
Despite Bitcoin often being dubbed “digital gold,” Magadini highlighted the crypto market’s relatively small size compared to traditional assets, suggesting significant growth potential if inflation concerns intensify. “NVIDIA alone is worth more than all the crypto market caps combined,” he noted, implying substantial room for crypto to appreciate.
Disclaimer: This content is aggregated from public sources online. Please verify information independently. If you believe your rights have been infringed, contact us for removal.