Bits + Bips: Why a Trump vs. Fed Showdown Would Crush the U.S. Dollar - Ep. 822

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Apr 23, 2025

Zach Pandl, Head of Research at Grayscale Investments, dives into the potential fallout of Donald Trump's threats to fire Fed Chair Jerome Powell. He discusses the critical importance of Fed independence and how these political maneuvers could undermine the U.S. dollar's credibility. The conversation explores a worrying shift in investment strategies, moving away from dollar assets towards Bitcoin and commodities. Plus, hear insights on how young crypto investors might respond to their first bear market, and parallels drawn between today’s economy and Argentina's.

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INSIGHT

Fed Independence Is Crucial

Threatening to fire the Fed Chair undermines the Fed's independence and damages financial markets.
The Fed's independence is crucial to maintaining economic stability and confidence in the U.S. dollar.

INSIGHT

Structural Shift from Dollar Assets

A structural rotation is occurring away from U.S. dollar assets towards commodities like gold, copper, and Bitcoin.
This shift reflects growing stagflationary pressures and changing portfolio preferences globally.

INSIGHT

Dollar Weakness Trending

The U.S. dollar is trending weaker and could fall to around 70 on the DXY index over a few years.
This dollar depreciation is comparable to historic declines after major trade conflicts.

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An independent Federal Reserve has long been the cornerstone of U.S. economic stability, but what happens when that foundation is shaken?

In this week’s episode of Bits + Bips, the panel digs into one of the most dramatic threats yet to financial markets: Donald Trump’s suggestion that he could fire Fed Chair Jerome Powell. It’s not just political theater, it’s a potential major blow to the credibility of the U.S. dollar and the independence of the world’s most important central bank.

Joining the panel is Zach Pandl, Head of Research at Grayscale, who explores why a rotation away from U.S. dollar assets might already be happening and what that means for bitcoin.

Plus:

Why the Fed’s independence is so crucial
The telltale signs of a structural capital rotation out of the U.S.
Whether bitcoin has officially decoupled from equities
How young crypto HODLers will react to their first bear market
And why this moment may look more like Argentina than America

Show highlights:

Sponsors:

Bitwise

Hosts:

Alex Kruger, Founder of Asgard
Ram Ahluwalia, CFA, CEO and Founder of Lumida
Steven Ehrlich, Executive Editor at Unchained

Guest:

Zach Pandl, Head of Research at Grayscale

Bits + Bips: Why a Trump vs. Fed Showdown Would Crush the U.S. Dollar - Ep. 822

Fed Independence Is Crucial

Structural Shift from Dollar Assets

Dollar Weakness Trending

Show highlights:

Hosts:

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