Analyst: 'Erdoğanization' of Fed under Trump could boost Bitcoin

Pressure from President Donald Trump to lower interest rates could undermine the Federal Reserve's political independence, potentially leading to a weaker U.S. dollar and benefiting Bitcoin, according to a DL News report. André Dragosch, head of research for Europe at Bitwise, described this possibility as the "Erdoğanization of the Fed," drawing a parallel with the Turkish government's interference in its central bank. In Turkey, the collapse of central bank independence triggered a sharp currency devaluation and high inflation, which in turn led to a surge in demand for Bitcoin. Dragosch noted that a weakening of Fed independence structurally implies higher inflation and a weaker dollar, which he views as a positive for Bitcoin. The analysis suggests that if the Fed chair is replaced or succumbs to political pressure, BTC could emerge as a prominent alternative asset.