The data currently on hand does not support the case for lowering interest rates, said the president of the Cleveland Fed.
The Federal Reserve should support technology and innovation, said Fed Governor Christopher Waller as the central bank relaxes its policies.
The majority of participants at the Fed's last monetary policy meeting saw inflation risk outweighing employment risk.
Waller is reportedly in the running to succeed Jerome Powell as Fed chair.
The Federal Reserve's Michelle Bowman says the central bank is at a "crossroads" when it comes to financial innovation.
The bubble in crypto treasury strategy companies deflated even further on Tuesday.
The Federal Reserve has shuttered the Novel Activities Supervision Program it built in 2023 that was — in part — meant to focus on banks' crypto activity.
SharpLink Gaming, the second-largest Ethereum digital asset treasury (DAT) company, reported a $103 million net loss in Q2.
The Federal Reserve said it is ending its program supervising banks involved in crypto and financial technology.
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
Bessent reiterated that the government would not sell bitcoin currently in the reserve, valuing it at $15 to $20 billion.
Bitwise CIO Matt Hougan says there are still four catalysts the market hasn't fully priced in which could push prices substantially higher.
Bitcoin also crossed back above $120,000, but it's underperforming much of the rest of the cryptocurrency sector.
In a bold move that could reshape the crypto landscape, the US President is reportedly preparing to sign an executive order aimed at protecting access to BTC and digital assets. If enacted, this landmark policy would redefine the relationship between digital assets and the US financial system. Bitcoin Steps Into The Political Spotlight Bitcoin has officially entered the hall of power, as the US President Donald Trump is preparing to sign an executive order that would prohibit banks from refusing services to Bitcoin and crypto-related companies. This move signals a major shift in the US policy and ends years of financial censorship against the crypto industry. Related Reading: Strategy Expands Bitcoin Holdings With Massive Third-Largest Acquisition According to a crypto enthusiast, Henry, with this impending order, the crypto industry appears to be getting serious respect from the White House, after years of regulatory uncertainty and political pushback. In the coming days, Henry suggests that positive developments are on the horizon, especially involving Federal Reserve Chair Jerome Powell. This kind of attention from the highest levels of government could shake up the entire market and trigger a wave of institutional interest and volatility. If this happens, it would be more than just good news, as it would be a game-changer. Not only could it act as a major catalyst for BTC, it would also open the doors for crypto businesses to access traditional financial services, which they need for growth. Bitcoin is gaining recognition among the highest forms of governments across the world. Reports show that the Indonesian Vice President Gibran Rakabuming Raka is exploring the possibility of adding Bitcoin to the country’s national reserves, according to a recent post from Bitcoin Indonesia. The move represents a bold step toward integrating digital assets into sovereign finance. If implemented, Indonesia would become one of the first major Asian economies to formally recognize BTC as a reserve asset, signaling a shift in how governments hedge against inflation, currency risk, and geopolitical uncertainty. The global spotlight is increasingly turning to crypto adoption at the state level. The Bhutan Government Moves $59.2 Million In BTC Several countries are engaging BTC globally at a rapid rate. In a significant and quietly executed move, the government of Bhutan has transferred 517 BTC, valued at approximately $59.2 million, to a new cryptocurrency wallet. This substantial transfer of BTC, reported by Crypto Rover on X, has sparked speculation among analysts and the crypto community about potential custody changes or strategic moves. Related Reading: Bitcoin’s $115K Struggle: Is a Deeper Drop on the Horizon? The Himalayan kingdom of Bhutan has consistently maintained a low profile in the world of sovereign crypto holdings, making it one of the most discreet yet active state players in the digital asset space. This recent movement may indicate a shift toward enhanced security and measures in BTC reserves. Featured image from Pixabay, chart from Tradingview.com
An executive order paving the way for crypto to be included in 401(k) plans is also helping boost prices on Thursday.
President Donald Trump has picked crypto-friendly Stephen Miran to serve on the Federal Reserve Board of Governors.
A draft of the order reportedly directs regulators to investigate if banks have violated any laws and threatens to fine firms involved.
Bitcoin-based funds led the outflows with $404 million, while Ethereum investment products continued their 15-week inflow streak.
A dismal U.S. jobs report, rising geopolitical risks, and recession worries triggered a broad crypto sell-off led by BTC and ETH.
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
Fed Chair Jerome Powell has been under considerable pressure from the White House to ease monetary policy.
The White House is tightening the screws on Jerome Powell, the chairman of the Federal Reserve.
A single-word reply on X from Rep. Anna Paulina Luna (R‑FL) — “Confirmed” — rocketed through the crypto markets early Wednesday, convincing a growing chorus of traders that Federal Reserve Chair Jerome Powell’s tenure is measured in days, not months. Within minutes of Luna’s affirmation that “Jerome Powell is going to be fired. Firing is imminent,” prediction‑market odds of his ouster on Polymarket leapt to 26 percent, the highest reading this year, up from 16 percent only 24 hours earlier. A White‑House‑backed search is already under way. Treasury Secretary Scott Bessent, in an on‑record Bloomberg interview, acknowledged “a formal process that’s already starting” to identify Powell’s successor, adding that “there are a lot of good candidates inside and outside the Federal Reserve.” Related Reading: ‘Crypto Week’ Takes A Hit: US House Fails To Advance Key Acts President Donald Trump underscored the point during an impromptu press gaggle, repeating last week’s warning that “the renovations at the central bank were a fireable offense.” Those renovations — an over‑budget, $2.5 billion overhaul of the Fed’s historic Eccles Building — have become the legal pretext for dismissal, with Trump allies alleging “inefficiency” and “neglect of duty,” two of the three causes for removal spelled out in the Federal Reserve Act. Powell has asked the Fed’s inspector general to reopen its review of the project. Notably, Bill Pulte, the Federal Housing Finance Agency head and a longtime Powell critic, confirmed the rumors to his followers on X: “I heard from a very credible, bipartisan source, today, that Jerome Powell is considering resigning. This maps with both reports and also the talk in DC.” Crypto Markets Sense A Massive Bull Run The Bitcoin and crypto prices haven’t shown any reaction to the rumor yet. After piercing $123,000 on Monday, BTC is still 4.5 percent below the record high. The entire crypto market seems to be in a wait-and-see position. However, long-term, the implication could be profound for the crypto markets. “I cannot think of a more bullish catalyst for Bitcoin in the past five years than the complete and utter humiliation of Jerome Powell,” wrote macro commentator Julian Figueroa, pointing to what he called the “façade” of central‑bank independence collapsing in real time. Related Reading: Happy Ending: Crypto Hacker Returns Funds From $42 Million GMX Exploit Long‑time trader Byzantine General echoed the ambivalence: “Powell was actually a great Fed chair. But… if he resigns then it’s very likely that whoever comes next will lower rates, which is bullish for our cryptographic currencies.” Should President Trump succeed in replacing Powell with a more accommodating successor—one prepared to deliver the “three‑percentage‑point” rate cut he has publicly demanded—the Federal Reserve would likely be forced to shelve its balance‑sheet runoff precisely as Washington ramps up fresh fiscal stimulus. That synchronous pivot away from quantitative tightening would flip the liquidity regime from drain to deluge, recreating the macro backdrop that powered the crypto market’s 2020‑21 vertical ascent and positioning it for the next major bull run. At press time, the total crypto market cap stood at $3.68 trillion. Featured image created with DALL.E, chart from TradingView.com
Significant legal challenges would arise from an attempt to remove Fed chair Jerome Powell, but Polymarket bettors are warming to the idea – even if it's still a longshot.
The federal agencies that oversee the U.S. banking system put out some guidance on properly keeping customers' crypto assets.
U.S. federal banking agencies released a joint statement setting out how existing rules apply to banks holding crypto on customers' behalf.
The White House's campaign for new Federal Reserve leadership amped higher over the weekend.
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
Jerome Powell’s cautious rate policy sparks fierce criticism and succession talks, putting his Fed Chair tenure under unprecedented scrutiny.
The liquidity engine that has supported risk assets, including Bitcoin, since the beginning of 2025 is now shifting into reverse. According to macro analyst Tomas (@TomasOnMarkets), the six-month upswing in Federal Reserve liquidity has ended, and a potentially destabilizing wave of debt issuance by the US Treasury is about to begin. In a post published on X late Sunday, Tomas warned: “ Federal Reserve Liquidity set to fall… The Fed liquidity upswing that began on January 1 2025 is now over.” Bitcoin Enters Danger Zone The catalyst behind this reversal is the recent $5 trillion debt ceiling increase passed by Congress last week. That legislative decision gives the Treasury Department the green light to aggressively rebuild its cash balance at the Federal Reserve—known as the Treasury General Account (TGA)—which had been intentionally drained to inject liquidity into the system during the first half of the year. “The US Government had previously been draining the Treasury General Account (liquidity injection). But a new debt ceiling agreement was reached last week ($5 trillion raise). This means the Government will start to flood the market with new debt to ‘refill’ the TGA (liquidity drain),” Tomas wrote. He emphasized that the refill target is currently set at $850 billion, up from recent levels around $350 billion, implying roughly $500 billion in liquidity will be removed from the system in the coming months. Related Reading: Bitcoin Investor Sentiment Back To ‘Very Bullish’ — What This Means The implications for Bitcoin are stark. Risk assets have historically benefited from rising dollar liquidity—particularly in the context of elevated ETF inflows, corporate adoption, and a weakening US dollar. But that backdrop is now shifting. As Tomas put it, “All else being equal, this TGA rebuild process should be bullish for the US dollar.” A strengthening dollar, when coupled with falling bank reserves, is generally a bearish environment for Bitcoin. The pressure on liquidity won’t necessarily come all at once, but the mechanics are clear. Treasury will issue large volumes of new short-term debt—primarily T-bills—to finance the TGA refill. This issuance will compete with other dollar-denominated assets for funding, draining cash out of banks and money markets. Tomas notes that this dynamic could be softened if money market funds rotate their cash out of the Fed’s Overnight Reverse Repo Facility, which still holds about $214 billion. “It’s possible that Treasury Secretary Scott Bessent could lower the target level, meaning less of a refill,” he adds. “I’d expect we may see a lot of T-bill issuance, which could tempt some of the remaining $214bn left in the Reverse Repo to leave the facility (liquidity injection) and lessen any negative impact of the TGA refill.” Still, even with some reallocation from RRP, Tomas expects the overall effect to reduce reserve balances—bank reserves as a percentage of GDP are likely to fall below 10%, he estimates. While this is not as dire as the 7% level reached in 2019 (which triggered the repo crisis), it represents a sharp tightening compared to the first half of this year. “There could be some funding stress around the end of September (end-of-quarter),” Tomas cautioned. Related Reading: Bitcoin Breakout Is A Trap—Analyst Predicts Pain Before $160,000 Surge Bitcoin’s performance has coincided with the exact window Tomas outlines as a liquidity upswing. As documented, Bitcoin’s price has closely tracked the direction of aggregate G5 central bank balance sheets and the level of US bank reserves. When those reserves shrink—especially in the face of stronger Treasury issuance and a rebounding dollar—Bitcoin has historically struggled to sustain upside momentum. This concern is compounded by Tomas’s warning that speculative short positioning against the dollar has reached extremes. “Back in January, I was shouting about a fall in the dollar. Now everybody and their mothers are bearish on the dollar, and positioning is massively short across the board. It’s time for, at the very least, an upward correction/consolidation for the US dollar, in my opinion.” Such a reversal in the dollar would mark a critical macro headwind for Bitcoin. The 90-day rolling correlation between Bitcoin and the US Dollar Index (DXY) remains firmly negative. In environments where the dollar strengthens—especially when driven by tightening liquidity—Bitcoin has rarely outperformed. The next several weeks will be critical. If Treasury proceeds with aggressive issuance and market participants demand higher yields, liquidity could tighten faster than anticipated. While Tomas does leave open the possibility that Secretary Bessent may adjust the TGA target downward, the baseline scenario remains a $500 billion net liquidity drain—directly reversing the conditions that allowed Bitcoin to surge. At press time, BTC traded at $108,148. Featured image created with DALL.E, chart from TradingView.com