Bitcoin News Today: Bitcoin Drops 11% Amid Political Pressure on Powell

Bitcoin recently experienced a significant drop, hitting a value of $117,660, unsettling the cryptocurrency community. This dramatic fall coincides with a political upheaval as Donald Trump criticizes Federal Reserve Chair Jerome Powell. Trump’s frustration stems from Powell’s reluctance to cut interest rates, prompting Trump to call for Powell’s removal months before the end of his term.

Representative Anna Paulina Luna, a Republican from Florida, has spearheaded a call for the Department of Justice to investigate Jerome Powell. Luna accuses Powell of lying under oath on two separate occasions since his appointment. This move is seen as a strong stance by the Republican Party against the Federal Reserve Chair.

“On June 25, 2025, Chairman Powell testified under oath before the Senate Banking Committee about the renovation of the Federal Reserve’s Eccles Building. During his testimony, he made several significant misrepresentations. In a letter to OMB Director Russell Vought, Powell downplayed the cost increase of the project from $1.9 billion to $2.5 billion. However, congressional investigators found neither the scope nor the budget overruns of the project were trivial.” – Complaint Letter to the DOJ

Leaders are discussing whether the ongoing renovation of Federal Reserve buildings could be used as a pretext to oust Powell. Details of the allegations were unveiled last week along with the Fed’s response and Trump’s strategy to potentially remove Powell. Although Powell dismisses these claims, the focus remains on his management rather than his defense.

If Powell is found guilty by the Department of Justice, Trump might quickly place a more sympathetic figure at the Fed’s helm, favoring interest rate cuts. This could compromise the Fed’s independence, risk market stability globally, and likely worsen the downturn in the cryptocurrency arena.

Bitcoin experienced a significant decline as tensions escalated surrounding Federal Reserve Chair Jerome Powell. The cryptocurrency market, known for its volatility, saw a sharp drop in Bitcoin's value as investors reacted to the political pressures and policy shifts within the Federal Reserve. The internal dynamics of the Fed, including changing expectations around rate policy and political tensions, contributed to the overall market volatility. These factors created an environment of uncertainty, leading to a sell-off in Bitcoin and other cryptocurrencies.

The pressure on Powell, stemming from various political sources, added to the market's unease. The Fed's role in managing monetary policy and its impact on global financial markets made any perceived instability within the central bank a cause for concern among investors. The potential for rate cuts or changes in policy direction further exacerbated the situation, as traders and investors sought to hedge against potential risks.

The decline in Bitcoin's value was not an isolated event but part of a broader market reaction to the Fed's internal dynamics. The cryptocurrency, which has often been seen as a safe haven during times of economic uncertainty, faced a sell-off as investors sought more stable assets. The political tensions surrounding Powell and the Fed's policies created a ripple effect, impacting not only Bitcoin but also other cryptocurrencies and traditional financial markets.

The market's reaction to these developments highlighted the interconnected nature of global financial systems. The actions and statements of central banks, particularly the Federal Reserve, have far-reaching implications for markets worldwide. The volatility in Bitcoin's value underscored the sensitivity of cryptocurrencies to broader economic and political factors, despite their decentralized nature.

As the situation unfolded, analysts and market participants closely monitored the developments, seeking to gauge the potential impact on their portfolios. The uncertainty surrounding the Fed's policies and the political pressures on Powell created a challenging environment for investors, who had to navigate the shifting landscape with caution. The decline in Bitcoin's value served as a reminder of the risks associated with investing in volatile assets, particularly during times of heightened market uncertainty.