Cryptocurrencies and stock prices rose sharply after U.S. President Donald Trump stated he had “no intention” of firing the Fed Chair after stating just last week, “If I want him out of there, he’ll be out real fast,”.
“None whatsoever,” said the president when asked about Federal Reserve Chair Jerome Powell’s removal, on Tuesday 22, April 2025, despite pressuring Powell to lower interest rates and calling him a “major loser” the day before.
With Trump’s change of plans, the U.S. stock indexes and cryptocurrency prices rose sharply. Bitcoin rose from $89K to just under $93.4K while Ethereum (ETH) rose by 8% over the past 24 hours, above $1,700, and dogecoin (DOGE) and Sui (SUI) gained 8.6% and 11.7%, respectively.
When the press asked Trump about his sudden change in the prospect of firing the Fed Chair, the president replied, “The press runs away with things.” However, “I would like to see him be a little more active in terms of his idea to lower interest rates. This is a perfect time to lower interest rates,” stated Trump.
Speaking further to reporters at the Oval Office, Trump stated that he would make a deal with China to lower tariffs. “It won’t be that high. No, it won’t be anywhere near that high, it will come down substantially, but it won’t be zero,” said the president. Analysts attribute this plan to hold negotiations is also a key factor that ignited a positive market sentiment, apart from changing his plans about firing Powell.
The Fed interest rates and the crypto prices have a negative correlation. When the interest rates are high, borrowing money or getting loans becomes expensive. The money supply in the market drains as a result, and when the supply of money reduces, investors shy away from investing in highly risky and volatile assets like crypto.
