DOJ drops probe into Fed chair Powell.
Bitcoin traders are watching the Fed’s regime change.
Bitcoin is lining up a push toward $90,000 as investors zero in on a changing of the guard at the US Federal Reserve, analysts say.
Iggy Ioppe, former Credit Suisse banker turned CIO at tokenisation platform Theo, told DL News that whether or not Kevin Warsh takes over the Fed smoothly is critical for crypto.
“Markets don't like uncertainty,” Ioppe said. “In the near term, it's a hawkish hold.”
Ioppe’s call comes as the US Department of Justice on Friday dropped its criminal investigation into Federal Reserve Chair Jerome Powell, removing a major obstacle to the US Senate confirming Warsh, President Donald Trump’s nominee, as the central bank’s next chief.
Polymarket bettors put his chances to be confirmed by May 15 at 97% — a sharp increase from the 28% assigned on Thursday.
Bitcoin investors have also been optimistic. The world’s largest cryptocurrency has climbed 18% over the past month, buoyed by renewed institutional demand and $2.5 billion in exchange-traded fund inflows in April, DefiLlama data shows. That’s a 90% jump from March.
Analysts told DL News last week that if Fed tailwinds align with the Clarity Act’s passage, Bitcoin could hit $100,000.
Fed drama unfolds
The Trump DOJ probe had cast a long shadow over Warsh's confirmation process.
Republican Senator Thom Tillis from North Carolina had placed an effective hold on the nomination until the probe ended. That roadblock is now gone.
Powell’s term as chair officially ends in mid-May. His tenure has been marked by tension with Trump, who has repeatedly criticised the Fed for not cutting interest rates fast enough. Those clashes intensified as geopolitical shocks such as the US-Israeli conflict pushed energy prices higher and complicated the inflation outlook.
Warsh’s confirmation hearing last week laid bare the political stakes. Lawmakers grilled him on his independence from the White House and pressed him on rate policy. He insisted the president never asked him to predetermine or commit to specific rate decisions.
Bitcoin to $100,000? What the Clarity Act and new Fed leadership mean for priceBitcoin to $100,000? What the Clarity Act and new Fed...Bitcoin to $100,000? What the Clarity Act and new Fed leadership mean for price
He also signalled that inflation control remains a priority and suggested reviewing how the Fed measures price pressures and communicates with the public. While he did not promise immediate rate cuts, he framed his approach as disciplined and data-driven.
Senator Elizabeth Warren accused the administration of trying to install a compliant Fed chair, warning against political interference in monetary policy.
The exchanges underscored how central bank leadership has become a flashpoint in broader political battles ahead of the midterm elections in November.
Crypto market movers
Bitcoin is down 0.5% over the past 24 hours at $77,638.
Ethereum is down 0.7% over the past few hours at $2,316.
What we’re reading
‘I suspected I was being socially engineered.’ Why crypto’s hacking epidemic is getting even worse — DL News
Quantum attack breaks crypto key 512x larger than last record. Is Bitcoin ready? — DL News
Treasury Sanctions Cambodian Senator Kok An Over Pig-Butchering Crypto Scam Network — Unchained
BTC is still in a bear market, full stop — Milk Road
AI boom leaves crypto VC fundraising in the dust, founders warn — DL News
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email him at lance@dlnews.com
