Bitcoin climbs after Fed nomination

Trump’s nomination of a pro-Bitcoin economist is seen as a tilt toward looser policy, though some warn it could erode the bank’s independence.

Bitcoin Advances After Trump Taps Bitcoin-Friendly Economist for Fed Role

President Donald Trump has nominated Stephen Miran, a Bitcoin-friendly economist, to the Federal Reserve Board, filling a seat left by Adriana Kugler. Miran currently chairs the Council of Economic Advisers and has Treasury Department experience, including a stint during the previous administration. Trump described Miran as having “unparalleled” economic expertise and noted he would serve through January 31, 2026.

Bitcoin rose about 2 percent, trading near $117,500, as markets began pricing in a potentially easier Fed stance under Miran. Analysts say the move reflects expectations of a dovish tilt, though some warn that weakening Fed independence could invite credibility risks. Inflation signals remain volatile, with the latest PCE reading at 2.6 percent, and measures such as Treasury auctions and gold prices signaling continued market anxiety. While Bitcoin is often dubbed digital gold, its total market cap remains small next to traditional assets and tech giants like Nvidia.

The nomination ties monetary policy expectations to a crypto-friendly voice in the central bank, a pattern that could stir investor optimism about looser policy. Yet the risk is real: if the Fed’s independence erodes, inflation discipline could come under renewed pressure, with long-term consequences for credibility and financial stability.

Observers will watch how Miran shapes policy signaling in the coming months. Markets will test the Fed’s reaction to inflation data and fiscal pressures, while crypto markets will monitor whether this appointment truly signals a broader shift or simply a political signal. The tension between innovation and inflation control remains the defining challenge for the central bank in a volatile economy.

Highlights

The policy path will depend on how the Fed balances independence with political pressures and economic data.