Bitcoin price rises as Trump pushes to replace Fed Chair Powell, with declining implied volatility and rising RSI fueling a four-day uptrend.
The price of Bitcoin (BTC) is up 0.63% in the early London trading session, indicating the fourth consecutive day of positive candlesticks.
Although the initial recovery was fueled by dip-buying and ceasefire announcements, the recent increase resulted from Trump’s remarks regarding the potential replacement of Jerome Powell, the Chairman of the US Federal Reserve.
The US’s interference in the Iran-Israel conflict and the destruction of Iran’s nuclear sites while simultaneously facilitating a ceasefire are among the factors contributing to the recent rebound in BTC and the crypto markets.
Trump Wants To Replace Fed Chairman Jerome Powell
During the 2025 NATO Summit, US President Donald Trump responded to an interviewer’s question by stating that he would shortly announce a replacement for the fed chair.
Bitcoin price concluded on June 25 with a 1.19% increase due to Trump’s remarks and the ongoing market dynamics.
Today, Bitcoin (BTC) costs $107,931, representing a 0.63% increase.
“I know, within three or four people, who I’m going to pick. He goes out pretty soon fortunately, because I think he’s terrible.”
The disagreement between the two is the source of Trump’s response.
Donald Trump desires an immediate reduction in interest rates; however, Powell opposes this and advocates for a data-driven approach.
Specifically, the United States President desires a decrease in interest rates by 1% to 2% and may take action before the conclusion of Powell’s term in 2026.
Trump’s previous statements, in which he expressed a desire to delay until Powell’s term expired, are contradicted by this comment.
In an interview with NBC, Trump responded, When pressed about removing the Fed Chair before 2026,
“Why would I do that? I get to change him (Jerome Powell) very quickly anyway in a short period of time.”
Bitcoin Price Declines; However, It Is Nearing Breakout
The Relative Strength Index (RSI) is consistently above the 50 mean level, indicating a distinct bullish trend on the daily chart.
This perspective suggests that the optimistic momentum is in control.
However, a more detailed examination of CoinGape’s aggregated Bitcoin Implied Volatility (IV) indicator reveals that the forward expectations for BTC are down.
Volatile outbreaks frequently accompany a decrease in IV. Explosive movements were observed during the IV’s lower limit retests on June 6, June 12, and June 18.
The IV has once again reached the lower limit as of June 25, suggesting that the Bitcoin price is poised for an explosive move.
Note: Implied volatility is a measure of the future expectations of investors that is determined by the positions and options data.
It can be employed to evaluate investors’ mentality regarding the immediate future.
Overextended movements are frequently indicated by a surge in short-dated IVs, which often leads to price reversals.
Conversely, the absence of IV suggests that the underlying asset is prepared for either an extended period of consolidation or an explosive move.
In addition to the aforementioned data points, a previous CoinGape article investigated three potential reasons for the Bitcoin price to reach its all-time high in June 2025.
In summary, the Bitcoin price remains skewed in favor of the investors following the announcement by US President Donald Trump that he intends to replace Federal Reserve Chairman Jerome Powell.
The increase in the value of BTC on June 25 is yet another indication of the investors’ response.
Furthermore, the increasing RSI and declining IVs also support a potentially favorable outlook for Bitcoin in the near term.
The long-term Bitcoin price prediction for 2025 remains primarily bullish on the higher timeframes despite the short-term noise.
