The tensions with the Fed stem from disagreements over interest rate hikes and inflation management, with Trump criticizing Powell's policies and questioning the Fed's approach during his presidency.

Recent efforts by Trump to remove Fed governor Lisa Cook and appoint bitcoin supporter Stephen Miran as a temporary Fed governor signal a broader attempt to reshape the Fed's leadership and influence monetary policy.

Market reactions to these developments include bitcoin reaching all-time highs, surging over $4 trillion in market value, and traders betting on rate cuts by the Fed, which is expected to stimulate bitcoin prices amid expectations of a dovish monetary policy.

Elon Musk has issued a stark warning about the US debt, which has ballooned to $37 trillion, emphasizing the potential for economic chaos and highlighting the impact such fiscal instability could have on bitcoin.

The market anticipates that the Fed will likely cut interest rates to address slowing labor markets, a move that has recently driven bitcoin's price upward as investors seek safe havens and growth opportunities.

Trump's antagonistic stance towards Fed Chair Jerome Powell and his attempts to influence or replace Fed officials have heightened fears that political interference could undermine the Fed's ability to operate independently, risking increased market volatility and economic instability.

Former President Donald Trump has openly expressed intentions to influence and potentially take control of the Federal Reserve, including efforts to replace Fed governors, which has raised serious concerns about the independence of the central bank.