Bitcoin News Today: Trump's Powell Criticism Sparks 2.1% Bitcoin Rally and Crypto Volatility

Donald Trump’s August 23, 2025, public criticism of Federal Reserve Chair Jerome Powell over the delay in initiating interest rate cuts triggered immediate volatility in the cryptocurrency market. Bitcoin (BTC) rose by approximately 2.1% in response, while Ether (ETH) experienced heightened intraday swings. The reaction was driven by increased expectations of looser monetary policy, with traders adjusting positions in real time based on the political signal [1].

The rapid response in crypto markets highlights the growing influence of macroeconomic and political commentary on digital assets. As the Federal Reserve’s policy decisions continue to shape risk asset pricing, political figures exerting pressure on central banks can indirectly influence investor sentiment and asset allocation strategies. In this case, rising volumes in stablecoins further indicated a short-term shift toward perceived safer liquidity, with investors hedging against potential market uncertainty ahead of further Fed action [1].

Trump’s remarks were interpreted as a challenge to the Fed’s current dovish stance, which had already been bolstering risk-on behavior in the crypto space. Bitcoin had already moved above $116,000 following Powell’s earlier Jackson Hole speech, and analysts noted the historical correlation between post-speech volatility and subsequent seasonal rallies in the fourth quarter [2]. With the likelihood of a September rate cut now above 91%, the market is pricing in a potential breakout for BTC toward key Fibonacci resistance levels above $123,000 [3].

The interplay between political narratives and monetary policy is creating a dual dynamic in the crypto space. While Powell’s comments on the labor market and inflationary risks continue to support a constructive outlook for Bitcoin, Trump’s vocal criticism raises concerns about policy unpredictability. This duality suggests that BTC may remain range-bound in the short term, with sharp price fluctuations likely as political commentary continues to influence investor behavior [1].

Stablecoin flows have also surged, reflecting a growing demand for liquidity amid heightened volatility. As institutional interest in Bitcoin continues to rise, stablecoins serve as both a hedging tool and a liquidity mechanism. This trend underscores the evolving role of digital assets in global finance, particularly as monetary policy remains a central theme in shaping market sentiment [4].

While Trump’s influence on crypto markets is often channeled through specific projects—such as the TRUMP coin, a Solana-based token whose valuation has dropped significantly from a 2025 peak—the broader Bitcoin market remains more closely tied to macroeconomic fundamentals. Analysts emphasize that BTC’s price action is primarily driven by Fed policy and economic indicators, rather than individual political movements [5].

Market participants are advised to closely monitor both Powell’s policy decisions and Trump’s public statements, as both factors could act as catalysts for further BTC volatility. The convergence of monetary policy and political commentary has intensified the sensitivity of the crypto market to non-trading signals, turning it into a high-stakes environment where even off-market developments can drive substantial price swings [6].

[1] https://en.coinotag.com/trumps-criticism-of-fed-chair-powell-could-drive-btc-volatility-as-stablecoin-volumes-rise/

[2] https://coingape.com/markets/bitcoin-price-prediction-post-powell-volatility-signals-another-massive-q4-rally-ahead/

[3] https://www.binance.com/en/square/post/28697272886497

[4] https://www.ainvest.com/news/bitcoin-price-volatility-institutional-adoption-strategic-entry-points-powell-jackson-hole-speech-2508/

[5] https://www.ainvest.com/news/trump-crypto-viability-2025-high-risk-gamble-polarized-political-climate-2508/

[6] https://www.project-syndicate.org/onpoint/what-happens-if-dollar-is-no-longer-world-leading-reserve-currency-by-dennis-j-snower-2025-08