13-8-2025 – President Donald Trump’s threat to allow a lawsuit against Federal Reserve Chair Jerome Powell over renovation costs and monetary policy has heightened expectations for looser monetary conditions, boosting cryptocurrency prices. The potential legal action centers on alleged mismanagement of the Fed’s $2.5 billion Washington headquarters renovation, a claim Powell and Fed officials have defended as justified.
The dispute intensifies Trump’s pressure on the Fed to cut interest rates, which have remained steady in 2025 despite signals of possible reductions in September, October, or December. Crypto analysts see rate cuts as a catalyst for increased liquidity, often fueling demand for risk assets like Bitcoin and altcoins. Bitcoin rose 0.74% in 24 hours to $119,775.08, while Ethereum surged 6.30% to $4,513.84, reflecting a 26.31% weekly gain. XRP climbed 3.83% to $3.27, and Bitcoin’s market dominance fell to 58.99%, indicating capital rotation into altcoins amid optimism for easier policy.
Market dynamics underscore this sentiment, with crypto derivatives open interest rising 3.72% to $203.37 billion, signaling heightened speculative activity. Gold futures edged up 0.15% to $3,347.97, while the U.S. dollar index dropped 0.44% to $97.927, suggesting a shift toward riskier assets. The Fear & Greed Index at 69 reflects strong market confidence, particularly for high-beta assets like Ethereum, which could benefit most from anticipated Fed easing.
