Crypto Shake-Up: Trump Picks Pro-Bitcoin Economist For Fed

Trump’s Surprise Move And The Immediate Impact On Bitcoin

On August 8, 2025, President Donald Trump surprised markets by announcing on Truth Social his nomination of Stephen Miran—Chairman of the Council of Economic Advisors and a long-time public supporter of Bitcoin—to the Board of Governors of the U.S. Federal Reserve. Miran will replace Adriana Kugler and serve until the end of the term in January 2026. Following the announcement, Bitcoin’s price jumped 2%, surpassing $117,500, as investors anticipated that the presence of a “pro-Bitcoin” figure at the Fed could usher in looser monetary policy.

Stephen Miran – An Economist With A Pro-Crypto Stance

Miran previously held a position at the U.S. Treasury Department under the Trump administration and has written extensively in defense of Bitcoin’s role in the financial system. According to Greg Magadini, Director of Derivatives at Amberdata, the market views Miran as likely to take a “dovish” approach—prioritizing economic growth over strict inflation control—aligning with Trump’s preferences. This expectation has been a key driver of Bitcoin’s sharp reaction and broader excitement in the crypto market.

Concerns Over Fed Independence And The Risk Of A ‘1970s Moment’

Magadini warned that if the Fed loses its independence in tackling inflation, the situation could echo the 1970s. Back then, the end of the Bretton Woods system saw gold prices skyrocket from $35 per ounce in 1970 to $700 per ounce in 1980. Today, similar warning signs are emerging: weak demand in U.S. Treasury auctions, steadily rising gold prices, and a Personal Consumption Expenditures (PCE) inflation reading of 2.6%—above both the Fed’s 2% target and the prior three-month average. These trends suggest inflationary pressures remain persistent.

Bitcoin As ‘Digital Gold’ And Its Growth Potential

Although often called “digital gold,” Bitcoin and the overall cryptocurrency market remain small compared to traditional assets. Magadini pointed out that the market capitalization of a single stock—NVIDIA—is currently larger than that of all 5,000+ cryptocurrencies combined. This implies that if inflation fears intensify, cryptocurrencies could still have substantial upside potential, though they would also face significant volatility and risk.

Opportunities And Challenges For The Crypto Market

Stephen Miran’s appointment—a known Bitcoin advocate—could bring digital assets closer to the heart of U.S. monetary policymaking. This represents both a chance to elevate the standing of crypto and a major challenge for the Fed in balancing economic growth with inflation control. History has shown that this balancing act is far from simple, and global investors will be watching every policy move with great attention.