The U.S. monetary policy is now under some very vocal pressures.
Trump expressed his dissatisfaction with the way monetary policy is now being conducted, and in no uncertain terms told his followers on Truth Social that Powell is a “disaster” and that “inflation is going to kill our economy”—and that he’s disappointed they’re now holding rates steady and not cutting them like he apparently thinks they should. What are the potential impacts of all this on not just the stock market but also cryptocurrencies and the wider economy?
At the center of the controversy is the well-known clash of interests: Trump’s aggressive preference for rate cuts to juice the economy versus Powell’s umpteenth reiteration of the Fed’s dual mandate—ensure stable prices and maximum employment. With the electoral drama of 2024 out of the way, we’re likely to be in a more volatile 2025 financial landscape. The priorities of elected officials and those of the independent central bank will likely be more at odds than ever—and likely a much bigger story than Trump still being very much in the picture.
More Publicly Traded Companies Now Hold BTC
In the first half of 2025, the number of publicly traded companies holding #Bitcoin has tripled compared to 2024. This surge is driven by increasingly crypto-friendly regulations in the U.S., which are encouraging corporate adoption of… pic.twitter.com/961ai5gLtP
— CryptoRank.io (@CryptoRank_io) June 19, 2025
Market Correction Highlights Growing Pressure
The ongoing rate stalemate has evoked a cautious retreat in the markets. As of now, Bitcoin trades at a distance of 6.8% from its all-time high of $64,000 reached on May 22, 2021. Similarly, the S&P 500 stands at a 2.6% deficit from its record peak of $3,386 reached on February 19, 2021. These figures represent a modest downward correction for both assets, but they shine a light on the current state of investor confidence in both the Fed’s next move and the broader macroeconomic recovery.
🇺🇸🏦 With Trump expressing his disappointment in Jerome Powell & the FOMC leaving interest rates unchanged, social media has erupted with discussions. Crypto, like global stock markets, stand to benefit if and when rate cuts happen again.
Currently, Bitcoin is -6.8% below its… pic.twitter.com/PTM1nAVx1W
— Santiment (@santimentfeed) June 19, 2025
In the past, lower interest rates have benefitted stocks and crypto assets because they mean cheaper borrowing costs, which translates into greater liquidity and risk appetite. Some traders and analysts see the potential for rate cuts as a bullish catalyst across the board. But rate cuts could be an even better catalyst for crypto, given that the market’s tendency to respond sharply to shifts in monetary policy.
Trump sees a link between his popularity and the Fed’s interest rate policies. When consumers and businesses are confident, the economy hums along. When that happens, the president tends to look good, at least if he’s up for re-election the next year.
But Powell has so far resisted this pressure, maintaining that any future rate moves will be guided by economic data—particularly inflation indicators—rather than political will.
This confrontation lays the groundwork for a strained standoff between the president and the Fed, with ripple effects almost sure to be felt in global markets.
Corporate Bitcoin Holdings See Massive Growth
Though rate policy usually gets the most attention, a much quieter but equally significant transformation is taking place within the crypto universe. The number of publicly traded firms that now hold Bitcoin on their balance sheets has tripled, from 10 to 30, over the last year. Why are so many more companies now jumping into the deep end of crypto, and what does it mean for the future?
More favorable regulation in the U.S. has set the stage for greater corporate adoption of crypto. Moves in Congress lately have clarified how crypto is taxed, set up some investor protections, and basically streamlined the regulatory environment for crypto, which makes it a whole lot easier for companies to hold and manage Bitcoin.
Next, rising geopolitical instability—from trade confrontations to shooting wars—has renewed enthusiasm for Bitcoin as a bulwark against uncertainty. Increasingly, many companies view BTC not just as a bet-it-all-in Vegas kind of play but instead as something more analogous to a strategic reserve that also happens to be digital gold. In times of market turbulence or currency convulsions, Bitcoin’s decentralization and global appeal have never looked more attractive to company treasurers looking for more ways to diversify.
Significantly, well-known companies in various fields—including technology, energy, and finance—have jumped onto the Bitcoin bandwagon, which suggests that the cryptocurrency’s standing in the corporate world is improving. No longer considered a fringe experiment, Bitcoin is now part of the fundamental corporate strategy in many high-profile companies.
Policy Uncertainty Fuels Crypto Sentiment
The Trump administration and the Federal Reserve are creating a crypto narrative.
We have a possible short-term upside event for not just Bitcoin but for all digital assets, which is that the Federal Reserve might cut interest rates. Lowering rates would be bad for the dollar. But it might not even be that bad for the dollar, because it would be lowering the opportunity cost of holding assets that don’t pay interest, like Bitcoin.
So it’s possible that if the Fed cuts rates, and in the context of broader questions about the federal government’s fiscal policy, we could see the dollar weaken, and that is going to be good for all these assets.
Powell and Trump’s stimulus vision in a push-pull market. Powell insists on making data-driven decisions. Trump, on the other hand, pushes for a very proactive kind of stimulus. You have market actors trying to make sense of this and price it in. And they’re having a hell of a time doing it. Why? Because what we’re talking about here is the inner dynamics of inflation.
At the same time, the increasingly broad institutional acceptance of Bitcoin provides another fresh layer of support for the cryptocurrency market. That could help soften any downward momentum that Bitcoin and other cryptocurrencies might have during poor macroeconomic conditions. And it reinforces the notion that those cryptocurrencies could indeed be viable long-term investments.
Once we reach the midpoint of 2025, the Fed’s next move will be the focus of attention, what with a presidential election having just taken place. And right now, we can only guess how the political-economic tug-of-war that is shaping the U.S. Congress might affect the future of both traditional markets and digital assets.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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