XRP Surges Amid Rumors of Fed Chair Powell’s Dismissal

XRP made headlines today as it soared past the $3 threshold, following widespread speculation regarding the potential removal of Federal Reserve Chair Jerome Powell. This dramatic move has reignited excitement within the cryptocurrency community, especially among XRP holders.

Reports suggesting that the Biden administration is considering replacing Powell caused significant waves across both traditional and digital markets. According to Bloomberg, a senior White House figure, who chose to remain anonymous, disclosed that while discussions about Powell’s departure are happening, no final decision has been made yet.

As the news circulated, XRP, which holds the position as the third-largest cryptocurrency by market capitalization, spiked briefly above the $3 mark. At the same time, Bitcoin edged closer toward the $120,000 level, signaling a broader rise in crypto confidence amidst institutional uncertainty.

This development has also impacted the traditional markets. Key U.S. stock indices, including the S&P 500, reacted negatively, trading in the red shortly after the rumor broke. This reflects growing investor concern over the possible erosion of the Federal Reserve’s independence and stability—an issue that tends to significantly influence market sentiment.

Cryptocurrency figures have not held back with their opinions on the matter. Mike Novogratz, a well-known crypto investor, labeled the suggestions of Powell’s dismissal as part of “Banana Republic moves” and encouraged investors to consider buying Bitcoin. His critique underlined how political turmoil and leadership disruptions can serve as a bullish signal for decentralized assets.

The speculation around Powell’s future is enhancing the argument that an unstable central banking environment may accelerate the adoption and perceived value of cryptocurrencies like XRP. With the Federal Reserve potentially heading toward a less aggressive monetary policy stance if leadership changes occur, market participants are viewing crypto assets as safe-haven alternatives once again.

Proponents of Ripple, the company behind XRP, have long argued that XRP is positioned to thrive in times of economic or institutional reshuffling. The asset’s latest price move—driven by external macroeconomic triggers rather than internal developments—serves to reinforce its reputation as a responsive and speculative digital currency.

Although there has been no official statement confirming Powell’s ouster, the intense market response and volume spikes in digital assets indicate just how sensitively cryptocurrencies react to disruptions in traditional financial ecosystems.

This event also underscores the increasingly strong link between political developments and market behavior in the crypto realm. If the Fed’s leadership changes, and signals emerge hinting at looser monetary policy, XRP and similar cryptocurrencies could continue gaining momentum in short order.

Related: XRP Price: $12M Max Pain for Bears

For now, traders and analysts alike are watching closely. Whether Powell remains in his position or not, the narrative of rising crypto resilience in the face of centralized instability is gaining traction—something Ripple supporters will likely point to as a growing validation of their token’s role in a new financial order.