Trump vs. Powell: Can Crypto Survive in the Economic Power Struggle of the United States?

Trump attacks the Fed, announces trade moves—can cryptocurrencies hold steady or will tensions in the U.S. shake Bitcoin and altcoin in 2025? Trump's economic strategy: Cutting interest rates, Tariffs, and Power President Donald Trump has once again ignited the financial debate — this time targeting Federal Reserve Chairman Jerome Powell. In a recent post on Truth Social, Trump accused Powell of being "too late" in cutting interest rates, arguing that this delay is costing America billions of dollars. This public attack comes amid Trump also promising to unveil new trade agreements for at least seven countries, indicating a significant shift in America's economic strategy. Behind these statements is Trump's upcoming "Liberation Day Tariff" deadline on August 1, 2025 - a political move aimed at forcing trade negotiations back or imposing tariffs on key global rivals. This is a hardline stance that could shift market dynamics far beyond the traditional finance sector.

Powell and the Fed: Hold the line or lose control? On the other side of the battlefield, Fed Chairman Jerome Powell remains cautious. Despite increasing political pressure, the Fed still opposes an early rate cut, citing concerns about inflation and the lasting effects of previous tightening monetary policy. The tug-of-war between a politically motivated Trump and a Fed constrained by institutions is creating instability not only in traditional markets but also in the cryptocurrency sector. When two of the strongest forces in U.S. economic policy collide, the ripple effect is unavoidable. Short-term pain, long-term opportunity for cryptocurrency? Tensions between the White House and the Federal Reserve often cause volatility. The cryptocurrency market is no exception. With Trump pushing for rapid interest rate cuts and changes in global trade, and Powell opposing, investors may see: Short-term risk-averse behavior, especially in altcoins. Sudden adjustments in Bitcoin and Ethereum if macro sentiment worsens. A stronger dollar temporarily, putting pressure on risk assets. However, the long-term outlook could be much brighter for cryptocurrencies. Why can cryptocurrency still lead the way Despite short-term volatility, fundamental macro changes can benefit cryptocurrencies in many ways: A weaker dollar = a stronger Bitcoin If Trump forces the Fed to cut interest rates, the US dollar may weaken - historically a currency that appreciates against Bitcoin and digital value stores. Tariffs may promote payments using blockchain. Trade tensions and disruptions in international payments may drive businesses to shift towards decentralized finance and blockchain-based payment tools. Regulatory delays due to blockage The political civil war may slow down strict regulations on cryptocurrency, creating more space for this sector to develop in the United States. Bitcoin as a risk mitigation tool. During times of institutional instability, Bitcoin often stands out as a risk hedging tool —especially when trust in traditional institutions like the Fed is eroded. All eyes are on August With August 1st being considered a crucial deadline for Trump's trade attack, the coming weeks could determine whether cryptocurrency will break out or consolidate. If Trump's statements bring optimism to the market and the Fed succumbs to pressure, Bitcoin could rise to $80,000. But if tensions escalate without a resolution, expect more sideways volatility - or even a correction - for both stocks and cryptocurrencies.