Crypto Market Slips Amid Fed Uncertainty and Trade Tensions

The cryptocurrency market remained volatile on Friday, as investor sentiment continued to dampen, following a week of tariff tensions and uncertainty surrounding the U.S. Federal Reserve’s next moves.

Bitcoin (BTC) dropped 0.7% over the past 24 hours, trading at around $84,446, while Ethereum (ETH) remained similarly flat on the day, trading at $1,587. Meanwhile, XRP and SOL both decreased by a mild 1% and are currently trading at $2.07 and $133, respectively.

The total cryptocurrency market capitalization fell by 1.7% on the day to $2.75 trillion, according to CoinGecko. Over the past 24 hours, leveraged liquidations reached $92.44 million, per data from CoinGlass. Bitcoin accounted for $15 million, followed by Ethereum with approximately $14 million. Altcoins made up around $12 million in liquidations.

In the exchange-traded fund (ETFs) space, US spot Bitcoin ETFs recorded nearly $108 million in outflows on Thursday, according to SoSoValue. Spot ETH ETFs remained flat with no inflows or outflows yesterday, following a 7-day streak of outflows.

Experts cited President Donald Trump’s renewed attacks on Federal Reserve Chair Jerome Powell as a key driver behind the market’s recent volatility. Trump’s comments on Thursday, including a statement that Powell’s “termination can’t come fast enough,” came in response to Powell’s warning that tariffs could lead to stagflation.

Trump vs. Powell

Tensions between the president and the Fed Chair heightened further after White House economic adviser Kevin Hassett said earlier today that Trump and his team are actively reviewing if Powell can be removed from his position. “The president and his team will continue to study that matter,” Hassett told reporters at the White House.

The comments came a day after Trump escalated his feud with Powell via a lengthy post on his social media platform Truth Social. “The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete mess!” the post reads.

Trump’s comments came after Powell warned at an event in Chicago on Wednesday that the economy is moving away from its goals of stable prices and maximum employment. Powell added that there may be “no progress” on either front for the rest of the year.

Jerome Powell was first appointed as Fed Chair in 2018 during Trump’s first term, and was later reappointed by President Joe Biden in 2022. His current term is set to expire in May 2026.