Donald Trump criticized Federal Reserve Chair Jerome Powell for delaying interest rate cuts, triggering immediate crypto market volatility: Bitcoin and Ether spiked while stablecoin volumes rose as investors rotated into perceived safe digital assets amid renewed rate-cut expectations.
Immediate market impact: BTC rose 2.1% after Trump’s comments, signaling short-term risk-on movement.
Stablecoin volumes increased, indicating investor risk aversion and hedging activity.
Macro tension between political figures and the Fed continues to move crypto prices and sentiment.
Meta description: Trump Powell interest rate cuts drove crypto volatility—BTC up 2.1%, stablecoin flows rose. Read analysis and next steps for traders on COINOTAG.
What happened when Trump criticized Powell and how did crypto markets react?
Donald Trump’s criticism of Jerome Powell on August 23, 2025, over delayed interest rate cuts produced rapid market moves: Bitcoin (BTC) jumped about 2.1% and Ether (ETH) showed heightened volatility. Traders increased stablecoin allocations as a defensive response to policy uncertainty.
Why did Trump’s comments move crypto prices so quickly?
Market sensitivity stems from the Fed’s central role in risk asset pricing. Political pressure on the Federal Reserve raises the probability investors assign to future rate cuts or policy shifts. Short-term traders and algorithmic desks adjust positions immediately on such signals.
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Bitcoin reacted with a swift ~2.1% intraday uptick as traders priced in a higher likelihood of looser monetary policy longer-term. Ether mirrored BTC’s volatility but with larger intraday swings due to on-chain activity and leverage differences in ETH derivatives markets.
Rising stablecoin volumes point to temporary risk aversion and liquidity rotation. Increased transfers into USD-pegged tokens often reflect hedging, awaiting clearer macro guidance before re-entering risk assets.
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Source: https://en.coinotag.com/trumps-criticism-of-fed-chair-powell-could-drive-btc-volatility-as-stablecoin-volumes-rise/