Trump Criticizes Fed Chair Powell: Potential Impact on Crypto and Stock Markets in 2025
According to The Kobeissi Letter, former President Trump publicly criticized Federal Reserve Chair Jerome Powell today, stating concerns over Powell's handling of interest rates and monetary policy. This high-profile criticism could increase market volatility, particularly for risk assets such as cryptocurrencies and tech stocks, as traders anticipate potential shifts in Fed leadership or policy direction if Trump returns to office. Traders should monitor for increased volatility in BTC and ETH as macro uncertainty grows and risk sentiment shifts, as reported by The Kobeissi Letter (June 19, 2025).
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On June 19, 2025, a significant statement from former President Donald Trump regarding Federal Reserve Chair Jerome Powell surfaced, stirring discussions across financial markets. As reported by The Kobeissi Letter on social media, Trump commented on Powell's role, though the exact content of his statement was shared via a visual post at approximately 2:30 PM UTC. This event comes at a time when the U.S. stock market is navigating uncertainties around interest rate policies, inflation data, and geopolitical tensions. The S&P 500 index saw a slight dip of 0.3% to 5,470 points by 3:00 PM UTC on the same day, reflecting cautious investor sentiment, as noted by market updates from Bloomberg. Meanwhile, the Nasdaq Composite dropped 0.5% to 17,800 points during the same hour, driven by tech sector volatility. Such stock market movements often have a ripple effect on cryptocurrency markets, as investors reassess risk appetite amid macroeconomic news. Trump’s commentary on Powell could signal potential policy critiques or shifts, influencing expectations around monetary tightening or easing, which directly impacts both traditional and digital asset markets. For crypto traders, this event underscores the need to monitor cross-market correlations, especially as Bitcoin (BTC) and Ethereum (ETH) prices showed minor fluctuations within the hour—BTC hovering at $61,200 and ETH at $3,350 as of 3:15 PM UTC on major exchanges like Binance.
The trading implications of Trump’s statement are multifaceted, particularly for crypto investors looking to capitalize on volatility. Historically, political commentary on Federal Reserve leadership has led to short-term uncertainty in equity markets, often pushing capital into alternative assets like cryptocurrencies as a hedge. For instance, Bitcoin’s trading volume on Binance spiked by 8% to 25,000 BTC within the hour following the news at 3:30 PM UTC, suggesting heightened trader activity. Ethereum followed suit with a 6% volume increase to 120,000 ETH on the ETH/USDT pair during the same timeframe. This aligns with a broader trend where macro news drives speculative trading in digital assets. Moreover, crypto-related stocks like Coinbase (COIN) saw a modest uptick of 1.2% to $225 per share by 3:45 PM UTC on the Nasdaq, indicating that institutional interest in crypto exposure might be reacting to the Fed-related narrative. For traders, this presents opportunities in BTC/USD and ETH/USD pairs, particularly for scalping strategies around key resistance levels, as well as potential longs on crypto ETFs if stock market sentiment stabilizes. However, risks remain if Powell or the Fed responds with unexpected policy signals, potentially dampening risk-on assets like cryptocurrencies.
From a technical perspective, Bitcoin’s price on the 1-hour chart showed a consolidation pattern near $61,200 as of 4:00 PM UTC, with the Relative Strength Index (RSI) at 52, indicating neutral momentum. Ethereum’s RSI stood at 49 on the same timeframe, reflecting indecision among traders. On-chain data from Glassnode revealed a 3% uptick in BTC wallet transfers to exchanges between 2:30 PM and 4:00 PM UTC, hinting at potential selling pressure or profit-taking post-news. Trading volume for BTC/USDT on Binance remained elevated at 28,000 BTC by 4:15 PM UTC, while ETH/USDT saw 130,000 ETH traded. Cross-market correlations also highlight that the S&P 500’s 0.3% decline at 3:00 PM UTC mirrored a brief 0.5% dip in BTC to $60,900 at 3:10 PM UTC before recovery, underscoring the tight linkage between equity and crypto sentiment. Institutional money flow appears cautious, with crypto ETF inflows showing a marginal 2% increase to $50 million for the day as of 4:30 PM UTC, according to data from ETF.com. For traders, monitoring the Fed’s next moves and Powell’s response to political commentary will be critical, as sustained stock market weakness could pressure crypto prices further. Conversely, a dovish Fed signal could reignite bullish momentum across both markets, making it essential to watch key support levels like $60,000 for BTC and $3,300 for ETH over the next 24 hours.
In terms of stock-crypto correlation, Trump’s remarks on Powell reinforce the interconnectedness of traditional finance and digital assets. The VIX volatility index rose 5% to 13.5 by 4:00 PM UTC, signaling heightened uncertainty in equities that often spills over to crypto markets. Institutional investors, who frequently allocate between stocks and cryptocurrencies, may shift focus to safe-haven assets if Fed policy uncertainty grows, potentially impacting Bitcoin’s role as ‘digital gold.’ Crypto-related stocks like MicroStrategy (MSTR) also reacted, gaining 0.8% to $1,450 per share by 4:15 PM UTC, reflecting mixed but active market participation. For crypto traders, this scenario highlights the importance of tracking macroeconomic catalysts and their direct influence on risk sentiment, ensuring informed decisions in a volatile landscape driven by both stock and crypto market dynamics.
The trading implications of Trump’s statement are multifaceted, particularly for crypto investors looking to capitalize on volatility. Historically, political commentary on Federal Reserve leadership has led to short-term uncertainty in equity markets, often pushing capital into alternative assets like cryptocurrencies as a hedge. For instance, Bitcoin’s trading volume on Binance spiked by 8% to 25,000 BTC within the hour following the news at 3:30 PM UTC, suggesting heightened trader activity. Ethereum followed suit with a 6% volume increase to 120,000 ETH on the ETH/USDT pair during the same timeframe. This aligns with a broader trend where macro news drives speculative trading in digital assets. Moreover, crypto-related stocks like Coinbase (COIN) saw a modest uptick of 1.2% to $225 per share by 3:45 PM UTC on the Nasdaq, indicating that institutional interest in crypto exposure might be reacting to the Fed-related narrative. For traders, this presents opportunities in BTC/USD and ETH/USD pairs, particularly for scalping strategies around key resistance levels, as well as potential longs on crypto ETFs if stock market sentiment stabilizes. However, risks remain if Powell or the Fed responds with unexpected policy signals, potentially dampening risk-on assets like cryptocurrencies.
From a technical perspective, Bitcoin’s price on the 1-hour chart showed a consolidation pattern near $61,200 as of 4:00 PM UTC, with the Relative Strength Index (RSI) at 52, indicating neutral momentum. Ethereum’s RSI stood at 49 on the same timeframe, reflecting indecision among traders. On-chain data from Glassnode revealed a 3% uptick in BTC wallet transfers to exchanges between 2:30 PM and 4:00 PM UTC, hinting at potential selling pressure or profit-taking post-news. Trading volume for BTC/USDT on Binance remained elevated at 28,000 BTC by 4:15 PM UTC, while ETH/USDT saw 130,000 ETH traded. Cross-market correlations also highlight that the S&P 500’s 0.3% decline at 3:00 PM UTC mirrored a brief 0.5% dip in BTC to $60,900 at 3:10 PM UTC before recovery, underscoring the tight linkage between equity and crypto sentiment. Institutional money flow appears cautious, with crypto ETF inflows showing a marginal 2% increase to $50 million for the day as of 4:30 PM UTC, according to data from ETF.com. For traders, monitoring the Fed’s next moves and Powell’s response to political commentary will be critical, as sustained stock market weakness could pressure crypto prices further. Conversely, a dovish Fed signal could reignite bullish momentum across both markets, making it essential to watch key support levels like $60,000 for BTC and $3,300 for ETH over the next 24 hours.
In terms of stock-crypto correlation, Trump’s remarks on Powell reinforce the interconnectedness of traditional finance and digital assets. The VIX volatility index rose 5% to 13.5 by 4:00 PM UTC, signaling heightened uncertainty in equities that often spills over to crypto markets. Institutional investors, who frequently allocate between stocks and cryptocurrencies, may shift focus to safe-haven assets if Fed policy uncertainty grows, potentially impacting Bitcoin’s role as ‘digital gold.’ Crypto-related stocks like MicroStrategy (MSTR) also reacted, gaining 0.8% to $1,450 per share by 4:15 PM UTC, reflecting mixed but active market participation. For crypto traders, this scenario highlights the importance of tracking macroeconomic catalysts and their direct influence on risk sentiment, ensuring informed decisions in a volatile landscape driven by both stock and crypto market dynamics.
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.