Crypto Markets Dip on Powell’s Comments, Senate Passing Trump’s ‘Big Beautiful Bill’

The cryptocurrency market experienced volatility on Tuesday following United States Federal Reserve Chair Jerome Powell’s latest comments on interest rate cuts, as well as news that the Senate passed President Donald Trump’s so-called “One Big Beautiful Bill.”

Bitcoin (BTC) is down 1.5% over the past 24 hours and is currently trading at around $106,000. Meanwhile, Ethereum (ETH) dropped 1.5% on the day to $2,430. Solana (SOL) declined by 6% to $147. XRP traded flat on the day at around $2.19.

The total cryptocurrency market capitalization has dropped by 3.5% over the past 24 hours to $3.38 trillion as $219 million in leveraged positions were liquidated. BTC led the liquidations with nearly $60 million. ETH and altcoins liquidations followed with $47 million and $26 million, respectively, according to CoinGlass.

U.S. spot Bitcoin exchange-traded funds (ETFs) attracted $102 million in inflows on June 30, continuing a 15-day streak of inflows. Meanwhile, spot ETH ETFs recorded nearly $32 million in inflows, according to SoSoValue data.

Behind the Dip

Market analysts say Tuesday’s volatility was partly driven by comments from Fed Chair Jerome Powell earlier in the day, as well as breaking news that the Senate passed President Trump’s One Big Beautiful Bill. The bill — a large and controversial government spending proposal from President Trump’s administration — is projected to add $3 trillion to the federal deficit over the next decade, according to the Congressional Budget Office.

The legislation passed today in a 50-50 Senate vote, with Vice President JD Vance casting the tie-breaking vote, The Hill reported.

Meanwhile, earlier today, while speaking at a central banking forum in Sintra, Portugal, U.S. Fed Chair Powell said that the central bank likely would have lowered interest rates this year if not for President Donald Trump’s sweeping policy changes.

“I do think that’s right,” he said, when asked if the Fed would have cut rates by now. So far this year, the Fed has held interest rates steady as it assesses the economic impact of Trump’s tariff policies.

The wait-and-see approach comes as Trump has continuously publicly criticized Powell for not cutting interest rates. Last month, the president slammed Powell as “stupid” and as “a political guy who’s not a smart person, but he’s costing the country a fortune.”