Bitcoin News Update: Crypto Markets Rattle Amid Fed's 10-2 Division and Trump's Warnings
- Fed Chair Powell cuts rates 25bps to 3.75%-4.00% amid government shutdown, warning data gaps hinder inflation response. - 10-2 policy split and Trump's "incompetent" attacks signal leadership challenges as crypto markets dip to $3.89T. - CBO projects $7B+ GDP loss by 2026 from shutdown, while analysts warn repo market fragility risks 2019-style crisis. - Bitcoin ETF inflows and Solana ETF debut hint at crypto resilience despite Fear & Greed Index hitting 39 ("Fear").
Federal Reserve Chair Jerome Powell has highlighted the economic impact of the ongoing U.S. government shutdown, cautioning that the lack of data makes policy decisions more challenging while inflation stays high, as reported by an
The Fed's latest move exposed internal disagreements, as the 10-2 split vote suggested Powell's influence over the committee may be weakening, according to an
At the same time, President Donald Trump has stepped up his criticism of Powell, calling him "incompetent" and suggesting he might replace him before his term ends in May 2026, as noted in a
The cryptocurrency market has reflected this turbulence, with total market value slipping to $3.89 trillion as investors awaited signals from the Fed.
The Fed's rate cut and pause in balance sheet reduction have set the stage for possible gains in crypto markets, as risk assets have historically benefited from more accommodative policies. Still, liquidity remains tight, and analysts warn that stopping balance sheet reductions is not the same as resuming quantitative easing. The Crypto Fear and Greed Index dropped to 39 ("Fear"), showing persistent caution despite the policy shift, as mentioned in a
The Fed's plan to end quantitative tightening by December signals a major move toward easing, but traders remain cautious about ongoing liquidity pressures, according to an
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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