Economist Alex Krüger suggests that Bitcoin's price has not yet incorporated the potential impact of a more dovish Federal Reserve, which hinges on US President Donald Trump's nomination of a new chair to replace Jerome Powell. Many investors anticipate a rate cut in September, and the choice of Fed chair could significantly influence Bitcoin's price trajectory. Since Powell's term runs until May 2026, Trump is reportedly narrowing down a list of candidates, which includes prominent figures like David Zervos and Rick Rieder. Krüger has a strong belief that changes in the Fed will lead to more accommodating monetary policy, which would later be reflected in Bitcoin's pricing after an announcement is made regarding Powell's successor. The market currently shows a high expectation for a rate cut with around 83.9% of participants predicting it, possibly leading to increased retail participation in Bitcoin as risk sentiment improves.

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