Bitcoin News Today: Bitcoin and Ethereum Volatile Amid Dollar Crisis Speculation and Fed Policy Shifts

Generated by AI AgentCoin World
Saturday, Aug 23, 2025 8:04 am ET1min read
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Aime RobotAime Summary

- Bitcoin, Ethereum, and XRP saw extreme volatility in late August 2025 amid speculation about a U.S. dollar crisis linked to Federal Reserve policies.

- Analysts like Peter Brandt predicted potential Bitcoin surges to $135,000–$190,000, framing crypto as an inflation hedge against a weakening dollar.

- Market optimism reversed after new U.S. Treasury Bitcoin regulations triggered a $120B sell-off, exposing crypto's sensitivity to macroeconomic and regulatory shifts.

- Stablecoin RLUSD's 40% single-day volume crash highlighted broader instability in dollar-pegged assets amid evolving investor sentiment and regulatory uncertainty.

Cryptocurrencies such as

Bitcoin
,
Ethereum
, and
XRP
experienced heightened volatility in late August 2025 amid speculation over a potential U.S. dollar crisis linked to Federal Reserve policies. Analysts and key market figures, including Peter Brandt and Crypto Rover, have fueled expectations that a weakened dollar could drive significant price surges in major digital assets [1]. The narrative suggests that as the U.S. dollar faces potential depreciation, cryptocurrencies are increasingly viewed as alternative stores of value and inflation hedges, echoing trends observed during previous periods of monetary easing [2].

Speculative forecasts have become a dominant theme in the market. Some analysts predict Bitcoin could reach between $135,000 and $190,000 in the current cycle, citing macroeconomic factors and historical parallels to the 2020–2021 bull run [3]. Ethereum and XRP are also highlighted as potential beneficiaries of the dollar’s supposed decline. However, these projections remain speculative and have not yet translated into confirmed institutional movements or strong on-chain activity signaling a widespread shift in capital [4].

The U.S. dollar’s alleged vulnerabilities have been attributed to Federal Reserve policies, with traders reacting to Powell’s dovish comments in early August. This triggered a short-lived rally in crypto markets, reinforcing the sector’s sensitivity to macroeconomic developments. Yet, the optimism was quickly tempered by a sharp market correction following new U.S. Treasury regulations, which introduced clarity but also restrictions on Bitcoin transactions. This policy shift led to a $120 billion sell-off and growing bearish sentiment among traders [5].

Meanwhile, stablecoin dynamics have added to market unease. RLUSD’s trading volume plummeted over 40% in a single day, reflecting broader concerns about the stability of dollar-pegged assets [6]. As uncertainty continues to mount, the market remains in a state of flux. While the Fed’s stance and potential rate cuts remain influential variables, the introduction of new regulatory frameworks and evolving investor sentiment are creating a more complex environment for crypto traders and investors.

Sources:

[1] https://coinmarketcap.com/community/articles/68a9ac09591a840d675646b4/

[2] https://m.economictimes.com/news/international/us/cryptocurrency-spikes-after-after-powell-hints-at-rate-cut-bitcoin-ethereum-litecoin-surge-is-momentum-finally-here/articleshow/123457352.cms

[3] https://www.okx.com/en-eu/learn/crypto-markets-federal-reserve-macroeconomic-trends

[4] https://www.ainvest.com/news/treasury-bitcoin-policy-shift-implications-crypto-market-stability-2508/

[5] https://seekingalpha.com/article/4815778-bitcoin-dont-ignore-these-important-bearish-signals

[6] https://coincentral.com/rlusd-volume-crashes-40-following-bullishs-1-15b-settlement/