Federal Economist Favorable to Bitcoin appointed by Trump, pushing Bitcoin's Market Progression
Fed's Credibility at Risk as Trump Appoints Bitcoin-Friendly Economist
A new development in the world of finance has raised concerns about the Federal Reserve's independence and its ability to combat inflation. President Donald Trump has appointed Stephen Miran, a known supporter of Bitcoin and a Bitcoin-friendly economist, to a seat on the Federal Reserve Board.
This appointment, according to Greg Magadini, director of derivatives at Amberdata, signals a shift towards easier policy from the Federal Reserve. Magadini warns of deeper structural risks if the Fed loses its independence, comparing it to the 1970s when the Fed's credibility was eroded, leading to high inflation.
Miran has publicly endorsed Bitcoin, often saying "Bitcoin fixes this," signifying his belief in the cryptocurrency's importance in the financial sector. He has also advocated for financial deregulation and highlighted crypto's potential role in economic growth.
However, Miran's policy proposals for the Federal Reserve raise deeper concerns. He has advocated for a significant overhaul of the Fed to increase political control, which could potentially politicize monetary policy and regulatory oversight. Critics warn that these reforms could materially erode the Fed's credibility and weaken financial stability.
Experts and advocates caution that these changes risk undermining the Federal Reserve’s credibility and financial stability, especially given broader economic uncertainties. Magadini, for example, has noted that U.S. Treasury auctions have shown weak demand in recent weeks, and gold prices have continued to climb, indicating a market view of inflation.
In the current environment, which has parallels with the 1970s, including poor Treasury auctions, rising gold prices, and uncertainty around Fed policy, some analysts have expressed concern about the potential erosion of the Fed’s credibility under Miran.
Stephen Miran will serve on the Federal Reserve Board until January 31, 2026. In the meantime, investors are closely watching Fed signals as inflation remains stubborn, with the latest PCE reading coming in at 2.6%, above both the Fed's 2% target and the prior three-month average of 2.3%.
Magadini also suggested that crypto has a lot of room to move higher if the market becomes more worried about inflation. NVIDIA, a single stock, is worth more than all the crypto market caps combined, according to Magadini, which indicates the potential for growth in the crypto market.
[1] Source: CoinDesk, 2025 [2] Source: Forbes, 2024 [3] Source: The Hill, 2024 [4] Source: Public Citizen, 2025
- Stephen Miran's crypto beliefs could have potential implications for the Federal Reserve, as he has advocated for cryptocurrency's role in economic growth.
- The cryptocurrency market, already subject to volatility, might experience significant fluctuations as investors gauge the impact of Stephen Miran's appointment on Fed policy.
- In the face of rising inflation and growing uncertainty around the Federal Reserve's future, some experts believe Bitcoin and other digital assets, such as crypto, could prove valuable due to their decentralized, tech-driven nature.
- The crypto market, with its decentralized and tech-driven approach, offers an alternative to traditional financial markets that investors may view as increasingly politicized due to political appointments like that of Stephen Miran.
