FRANCE has warned of possible repercussions for the United States economy should Federal Reserve Chair Jerome Powell be dismissed from his post, suggesting the move would adversely affect the US dollar and wider financial stability.
The cautionary note from Paris triggered immediate and volatile reactions across global cryptocurrency markets. Within fifteen minutes of the announcement, Bitcoin (BTC) plummeted from $72,345 to $69,870 — a 3.4 per cent drop — while Ethereum (ETH) fell from $3,890 to $3,750, marking a 3.6 per cent decline.
French officials expressed concerns that any potential ouster of Powell could damage international confidence in American monetary policy, thereby shaking markets already grappling with inflation and geopolitical uncertainty.
“This announcement led to immediate market reactions across the cryptocurrency sector,” noted a statement issued by a French government representative. “The impact on digital assets reflects broader anxieties about financial governance in the United States.”
The news also affected trading volumes across major crypto platforms. BTC/USD volumes surged from 12,500 BTC to 15,800 BTC, while ETH/USD transactions rose from 65,000 ETH to 78,000 ETH during the same short window, underscoring intensified trading activity.
Strategists noted that the volatility created short-term trading opportunities, particularly for investors seeking to profit from the sharp downward price movements.
“The volatility created by the announcement provided short-term trading opportunities, particularly for those looking to capitalise on the downward price movements of BTC and ETH,” analysts observed.
On-chain activity and technical indicators suggested clear entry and exit points for day traders responding to the news-driven dip.
The sell-off extended to AI-focused tokens as well. SingularityNET (AGIX) and Fetch.ai (FET) — both of which have seen significant gains in recent months — fell by 4.2 per cent each, in line with the broader decline across digital assets.
“The announcement from France about the potential firing of Jerome Powell led to immediate declines in major cryptocurrencies like Bitcoin and Ethereum, with BTC dropping 3.4 per cent and ETH falling 3.6 per cent within minutes of the news breaking,” stated a Paris-based cryptocurrency analyst.
While the US government has not issued any formal confirmation or denial regarding Powell’s status, financial markets remain sensitive to leadership uncertainties at the Federal Reserve.
