Bitcoin And Crypto In Turmoil As Tensions Between Trump and Powell Escalate

The Bitcoin and cryptocurrency market is facing heightened volatility as ￰0￱ Donald Trump escalates his battle with the Federal Reserve. Trump’s unprecedented move to ‘fire’ Fed Governor Lisa Cook, paired with growing friction with Fed Chair Jerome Powell, has rattled investor confidence and triggered a broad sell-off in risk assets, including Bitcoin and ￰1￱ Trump – Powell Fallout Markets had initially welcomed Powell’s dovish hints at the Jackson Hole symposium , where he suggested the Fed may be closer to easing its restrictive monetary policy. However, optimism quickly faded as Trump pressed for more aggressive rate cuts and attempted to remove a sitting Fed governor, an act widely seen as undermining central bank ￰2￱ fallout was ￰3￱ (BTC), which had surged past $117,000 after Powell’s remarks, dropped below the key $111,000 level and is now trading more than 12% off its mid-August all-time ￰4￱ (ETH) slid over 5% overnight, with other leading cryptocurrencies like Solana (SOL), XRP, and Dogecoin (DOGE) also posting steep ￰5￱ Reacts to Uncertainty The total crypto market capitalization has fallen 2.48% to $3.79 trillion, while trading volume spiked 67% to $220 billion, signaling frantic repositioning by ￰6￱ $900 million in leveraged positions were liquidated in the past 24 hours, amplifying the downturn.

Bitcoin’s dominance has slipped to 57.5%, with Ethereum’s share rising slightly to 14.4% as ETF flows ￰7￱ Spot ETFs saw $23 million in net outflows on Friday, led by iShares Bitcoin Trust, while Ethereum Spot ETFs recorded $338 million in inflows, highlighting shifting investor ￰8￱ were not spared. BNB, Cardano, and TRON all posted overnight declines of 3–4%, while meme favorite Dogecoin slumped nearly 5%. A few tokens bucked the trend, HyperLiquid (HYPE) gained 2.6%, and VeChain (VET) climbed 3.6%, but most of the top 100 coins bled heavily. What’s Next for Bitcoin and the Fed?

Analysts warn that political interference at the Fed could further destabilize ￰9￱ markets currently give just a 9% chance of Powell being ousted in 2025, but Trump’s actions have raised legal and institutional ￰10￱ Trump succeeds in reshaping the Fed to favor easier policy, risk assets like Bitcoin could benefit longer term from looser ￰11￱ now, traders are focused on key technical ￰12￱ must reclaim the $111K–$112K zone to avoid a deeper slide toward $100K. Cover image from ChatGPT, BTCUSD chart from Tradingview