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US President Donald Trump is weighing legal action against Federal Reserve Chair Jerome Powell, tying the clash to his demand for an immediate interest rate cut.

The standoff comes after fresh inflation data showed consumer prices cooling more than expected, raising speculation over how the Fed’s next move could ripple into digital asset markets.

Bitcoin Rises On Trump-Powell News

Despite the political drama, Bitcoin price inched closer to $121,000, signaling strong market momentum.

Bitcoin price moving closer to the $121k level today. Source: CoinMarketCap

Renovation Costs Row Puts Fed Under Pressure

In a Truth Social post, Trump said he’s considering allowing a major lawsuit to proceed against Powell over the cost of Federal Reserve building renovations.

He claimed the project should have been a $50 million “fix-up,” not a $3 billion overhaul. Reports have disclosed that Powell was previously referred to the Department of Justice for alleged perjury tied to the same costs.

During a recent visit to the Fed to inspect the renovation, Trump once again pressed Powell to cut rates. The president accused the Fed chief of acting “too late” on key policy decisions, calling the damage “incalculable.”

Rate cuts are typically seen as bullish for risk assets, including Bitcoin and other cryptocurrencies, as they can weaken the US dollar and encourage more speculative investment.

President Donald Trump said he is weighing a lawsuit against Federal Reserve Chair Jerome Powell over the renovation of the central bank’s headquarters, a project whose cost overruns have drawn scrutiny. https://t.co/1WQIlBDlcb

— Bloomberg Law (@BLaw) August 12, 2025

Cooling CPI Data May Boost Rate-Cut Odds

The latest Consumer Price Index showed a 2.7% year-over-year rise in July, lower than the forecasted 2.8%. Monthly CPI eased to 0.2% from the previous 0.3%.

Based on reports, the data suggests Trump’s tariffs have not pushed inflation higher, undermining the Fed’s earlier caution on cutting rates. Trump said tariffs aren’t hurting consumers, claiming large amounts of cash are flowing into the US.

As of today, the market cap of cryptocurrencies stood at $4 trillion. Chart: TradingView

A rate cut in this environment could create a more favorable backdrop for crypto prices, as cheaper borrowing and weaker yields in traditional assets often drive more interest in alternative stores of value like Bitcoin and Ethereum.

Miran Backs Trump’s Economic View

Stephen Miran, Trump’s nominee for the Fed Board, told CNBC that inflation is “well behaved” and running at a 1.9% annualized rate since Trump took office. He stressed that CPI data rarely gets revised and there’s no sign of tariff-driven inflation.

His comments align with Trump’s position and add to the market’s expectations that the Fed may shift toward easing sooner. Crypto traders are watching closely, as a dovish Fed stance could ignite rallies across major tokens.

The combination of political heat, legal threats, and softer inflation data is putting Powell in a tight spot. If rate cuts arrive faster than expected, crypto markets could see a surge in momentum — and Bitcoin’s move toward $121,000 suggests investors may already be positioning for it.

Featured image from Meta, chart from TradingView

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Hassan Shittu

Journalist

Hassan Shittu

About Author

Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in…

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Last updated: 

August 1, 2025

Bitcoin plunged below $115,000 on Friday as renewed political pressure from former President Donald Trump unsettled markets.

The top cryptocurrency dropped to $113,164, its lowest in weeks, triggering over $200 million in liquidations from leveraged long positions and raising fresh concerns over investor confidence. The drop comes amid escalating geopolitical tension.

Trump Orders Submarine Move Amid Russia Tensions, Bitcoin Reacts to Risk Fears

Trump announced the repositioning of two U.S. nuclear submarines in response to comments by former Russian President Dmitry Medvedev, now deputy chairman of Russia’s Security Council. Medvedev had criticized Trump’s ultimatum that Russia end its conflict with Ukraine within ten days, calling it “a step towards war.”

“Based on the highly provocative statements of the former president of Russia, Dmitry Medvedev, […] I have ordered two nuclear submarines to be positioned in the appropriate regions,” Trump wrote on Truth Social.

He added that “Words are very important and can often lead to unintended consequences. I hope this will not be one of those instances.”

Bitcoin’s price decline followed these remarks from Trump, reflecting broader investor anxiety as tensions between nuclear powers rise.

Friday’s market reaction also follows Trump’s public attacks on U.S. economic institutions. The former president accused Erika McEntarfer, Commissioner of Labor Statistics, of manipulating jobs data ahead of the 2024 election to help Kamala Harris.

He called for her immediate removal and claimed the Bureau had “faked the jobs numbers” by overstating employment growth.

“We need accurate Jobs Numbers,” Trump wrote. “She will be replaced with someone much more competent and qualified.”

He also turned his attention to the Federal Reserve, sharply criticizing its chair, Jerome Powell. Trump claimed the Fed’s pre-election rate cuts were politically motivated and called Powell “a stubborn MORON.”

“Jerome ‘Too Late’ Powell must substantially lower interest rates NOW,” he wrote. “IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”

While presidents traditionally avoid interfering with central bank decisions, Trump urged Fed officials to overrule Powell and slash rates to support what he described as a booming economy under his leadership.

The Fed has held rates steady for five consecutive meetings, citing inflation concerns. But Trump, in a flurry of posts, accused Powell of damaging the economy and failing to act on the consequences of new tariffs.

Fed Governor Adriana Kugler Resigns, Opening Key Seat for Trump

Amid the political pressure, Federal Reserve Governor Adriana Kugler announced her resignation on Friday, creating a key vacancy at the central bank. Kugler, a Biden appointee, joined the Fed’s Board of Governors in 2023 and was a permanent voting member on the Federal Open Market Committee.

She did not give a reason for her early departure but stated she would return to Georgetown University in the fall.

“It has been an honor of a lifetime to serve,” Kugler wrote in a letter addressed to Trump. Her exit, nearly 18 months before her term was set to expire, clears a path for Trump to nominate a replacement.

Kugler had recently voiced support for keeping rates steady, pending a clearer picture of how tariffs are affecting inflation. She was absent during this week’s policy vote, where two Trump-appointed members dissented, favoring a rate cut.

Fed Chair Jerome Powell thanked Kugler for her service, noting her contributions brought “impressive experience and academic insights” to the Board.

Bitcoin Slides as Political Tensions and Market Jitters Weigh on Sentiment

Bitcoin slipped further on Friday as rising geopolitical tensions and cautious investor sentiment added pressure to already fragile markets. The cryptocurrency is now trading just 7% below its all-time high of $123,182 set in mid-July, though momentum in derivatives markets is showing signs of cooling.

Notably, the monthly futures premium for Bitcoin has narrowed to 6%, down from earlier highs this month. Analysts say the drop reflects reduced appetite for leveraged long positions, suggesting traders are becoming more risk-averse despite ongoing institutional interest.

Bitcoin’s recent price behavior has also contributed to uncertainty. Rather than acting as a hedge, the asset has moved in step with tech stocks, exposing it to broader macro and political shocks. With tensions between the U.S. and Russia flaring again this week, risk appetite appears to be shifting.

The political back-and-forth added to a market already grappling with trade friction and weak economic data. While gold has remained stable around $3,350, it has offered little relief for those hoping Bitcoin would act as a safe-haven alternative. Traders appear to be rotating into cash and short-term government bonds as volatility increases.

Despite the decline, Bitcoin remains well above its January levels. However, with global uncertainty rising, traders may remain cautious in the short term.

Amid the broader pullback, some investors are reassessing Bitcoin’s long-term role. Bridgewater Associates founder Ray Dalio, previously skeptical, has updated his outlook. Speaking on a recent podcast, Dalio recommended allocating up to 15% of a portfolio to gold or Bitcoin as a hedge against U.S. debt and inflation.

“The U.S. is entering a debt doom loop,” he said, referencing Treasury forecasts of $12 trillion in new debt within the next year.

Dalio noted that while Bitcoin remains volatile and faces regulatory questions, its role as a store of value is becoming harder to ignore.

U.S. cyber agencies, the FBI, and NSA issued an urgent warning today about potential cyberattacks from Iranian-affiliated hackers targeting U.S. critical infrastructure.

CISA says there are no indications of an ongoing campaign but urges critical infrastructure organizations and other potential targets to monitor their defense due to the current unrest in the Middle East and cyber attacks previously linked to Iran.

In a joint fact sheet, the cyber agencies warn that Defense Industrial Base (DIB) companies with ties to Israeli defense and research, are at increased risk at being targeted. Other organizations in critical infrastructure sectors, including energy, water, and healthcare, are also considered potential targets.

The advisory warns that Iranian threat actors are Iran are known to exploit unpatched vulnerabilities or utilize default passwords to gain breach systems. This was seen last year when IRGC-affiliated Iranian threat actors breached a Pennsylvania water facility in November 2023 by hacking into Unitronics programmable logic controllers (PLCs) exposed online. 

Iranian-affiliated hackers also work with or act as hacktivists, performing distributed denial-of-service (DDoS) attacks or defacing websites. These attacks are often conducted in conjunction with politically motivated messages, with the attackers promoting their activities on X and Telegram.

Iranian threat actors have also been observed utilizing ransomware or working as affiliates with Russian ransomware gangs, such as NoEscape, Ransomhouse, and ALPHV (also known as BlackCat). Many of these attacks were focused on Israeli companies, where they encrypted devices and leaked stolen data.

In some cases, the attackers used data wipers instead of ransomware to conduct destructive attacks on organizations.

Mitigating attacks

CISA, the DoD, the FBI, and the NSA are urging organizations to adopt the following best practices to protect against these threats:

• Isolate OT and ICS systems from the public internet and restrict remote access.
• Use strong, unique passwords for all online accounts and systems, changing all default account passwords.
• Enable multi-factor authentication (MFA) for critical systems and authentication platforms.
• Install all software updates, especially on internet-facing systems to fix known vulnerabilities.
• Monitor networks and servers for unusual activity.
• Develop and test incident response plans to make sure that all backups and recovery plans are working.

For more information, organizations can read CISA’s Iran Threat Overview and the FBI’s Iran Threat web pages.

Crypto Journalist

Amin Ayan

Crypto Journalist

Amin Ayan

About Author

Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has…

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June 7, 2025

A wave of violent kidnappings targeting cryptocurrency holders is pushing some of the industry’s most well-known figures to overhaul their security — including Didi Taihuttu, patriarch of the so-called “Bitcoin Family.”

Taihuttu, who famously sold everything in 2017 to go all-in on Bitcoin, revealed that his family has abandoned hardware wallets and now hides their crypto seed phrases across four continents.

The shift follows a string of threats and rising attacks on crypto holders worldwide.

Even at Gunpoint Attackers Would Get Little

“We have changed everything,” Taihuttu told CNBC from Thailand. “Even if someone held me at gunpoint, I can’t give them more than what’s on my phone wallet — and that’s not much.”

Over the past eight months, the family moved to a hybrid system: seed phrases are encrypted, split, and stored in both physical and digital formats.

Some parts are etched onto fireproof steel plates hidden across four continents. Others are stored via blockchain-based encryption services.

“You only need to remember which words you changed,” Taihuttu explained. The system ensures that even if attackers access part of the seed phrase, they cannot unlock the family’s full holdings.

The decision comes as physical attacks on crypto holders increase. Moroccan police this week arrested a suspect accused of kidnapping crypto executives.

In France, the father of a crypto millionaire was brutally attacked. And in New York, a tourist was tortured for over two weeks as kidnappers tried to extract his Bitcoin credentials.

The Taihuttus, who remain entirely unbanked and travel full-time with their three daughters, say they are rethinking even their public presence.

After strangers tracked their residence through YouTube videos, they stopped posting travel updates and moved homes.

“We got a little bit famous in a niche market — but that niche is becoming a big market now,” Taihuttu said, noting the family has decided to avoid traveling to France altogether.

About 65% of their crypto is now locked in cold storage across four continents. The rest remains in multi-signature wallets or decentralized exchanges for trading and daily spending.

Taihuttu said they avoid centralized vaults and services, preferring to retain full control.

“What happens if one of those companies goes bankrupt? You’re putting your capital back in someone else’s hands,” he said.

Crypto Executives Hire Bodyguards

As reported, crypto executives are turning to personal security services as targeted kidnappings and ransom attempts continue to escalate, particularly in France.

In May, private security firms such as Infinite Risks International, based in Amsterdam, reported a sharp increase in demand from crypto professionals seeking round-the-clock protection amid rising crypto kidnapping.

The rise in inquiries came a after spate of violent attacks, including multiple kidnappings attempts that have alarmed both investors and law enforcement.

By Nick Percoco, Chief Security Officer of Kraken

Every year, crypto conferences are becoming bigger and more global. There are face-to-face opportunities to interact with peers across the crypto community, from New York to Dubai and Singapore. These gatherings are one indication that Crypto has reached an inflection point in its mainstream adoption.

However, as they grow, there has also been a quiet but troublesome trend. Personal security hygiene at the crypto meeting took the back seat. This trend has emerged before the recent well-known code entitled. Unfortunately, the Crypto community has now become openly displaying and discussing Crypto topics (even wealth and even high value transactions) in a public setting.

At the heart of Crypto is your own bank. And if your personal and operational security (OP-SEC) is not prioritized above all, it is extremely difficult (if not impossible) to achieve your financial freedom promise.

Kraken’s dedicated security team monitors this trend while attending industry meetings. Here’s what they see and what all attendees need to keep in mind:

Basic situational awareness is often ignored

While walking around the networking events and expo areas, our team kept an unmanned laptop owned by the popular Crypto protocol open and identified it as unlocked in the work settings. Similarly, they highlight many instances of mobile phones that are not registered in the table, even if the wallet notifications are ping in real time.

If you’re in crypto, your digital device isn’t just a phone or laptop. It’s a safe to do to you, your cryptographic means, and your wider employer’s operations. When you are not using the device, always keep it close and lock it.

Openly broadcast wealth and valuable transactions

One of the team members left their hotel room one night, a few miles from the meeting venue, met several attendees, discussing the valuable deals while wearing the meeting straps, including their names and companies.

Even if you don’t think everyone is listening, someone might be better. Be modest to protect yourself and those around you.

Public spaces are not safe

You should be even more cautious about cryptographic meetings to avoid blindly trusting WiFi in busy coffee shops. Public networks can easily be spoofed or compromised, and crypto events are full of very technical individuals, including those with hacking skills. To exploit unsecured connections, you only need one bad actor.

Think carefully before scanning a QR code

From giveaways to product demonstrations, it can be found everywhere in Crypto events, but each scan can be exposed to a malicious smart contract designed to drain the wallet. Bad actors use one sticker swap to risk dozens (if not hundreds) of participants in order to replace legitimate QR codes in their marketing material with fake codes.

Although we have not seen any recent reports on this in the wild, the risks remain real. A safer approach is to use burner wallets with limited funding dedicated to meeting activities. That way, if something goes wrong, your main holdings will remain protected.

Beware of who you trust and what you reveal

Not everyone on the meeting t-shirt is who they say. It’s very easy to build a cover story or register under a fake persona during the event. We recommend that you check your identity and always check it out to protect sensitive conversations or as follow-up after in-person events. If that seems too good, it is probably.

But that’s not all. Our team is keenly aware of the low risks associated with participating in the event, but equally serious risks. Always look closely at food and drinks. Tampering is rare, but it is a real threat, especially in high-stakes environments.

Similarly, compromises on devices are easier than most people can achieve. One common tactic is juice jacking, where malicious USB charging stations are used to install malware or data. Our recommendations are simple. Always use your own wall adapter and charging cable. If that means a quick trip to your hotel room, it’s a small price to pay to keep your digital assets safe.

As cryptography continues to grow and mature, our approach to security must remain uncompromising

The more visible and mainstream the industry becomes, the more attractive we are to bad actors and it is easier for self-satisfaction to undermine progress. It’s time to go back to basics. In today’s high-stakes environment, cryptography complacent is not just a personal risk, but a threat to our wider movement.

Crypto traders betting on a steady bitcoin

rally got a sharp reminder of headline risk from Donald Trump’s latest tariff threats.

Over $300 million worth of leveraged derivatives positions were liquidated across centralized exchanges in the past four hours, according to CoinGlass data, as crypto prices plunged following the news.

Nearly all liquidations came from long positions—traders betting on higher prices. BTC longs accounted for $107 million of the total, while Ethereum’s ether

followed with close to $87 million. Other tokens, including Solana’s SOL , dogecoin , and SUI saw liquidations ranging between $10 million and $18 million.

“Nice aggregate flush of long leverage and de-risk selling from spot,” well-followed crypto trader Skew noted in an X post early Friday. “All driven by headlines once again.”

The sell-off came after Trump proposed a 50% tariff on imports from the European Union starting next month, along with a 25% tariff on iPhones manufactured outside the U.S., reigniting fears of an escalating trade war.

As a result, BTC and major altcoins such as Ether

, XRP , and Cardano fell 3% to 4%, while smaller-cap tokens like Uniswap and SUI dropped 5% to 7% over the past 24 hours.

Crypto trader named James Wynn, who gained attention recently opening a $1.1 billion BTC long bet with 40x leverage on the Hyperliquid exchange, also slipped underwater on the massive position. Currently, the trader is sitting on $7.5 million of unrealized losses, and the position could be liquidated if BTC slips to $102,000, according to a screenshot shared on X.

Interestingly, the long liquidations came amid a recent unusual tilt toward short positions in BTC derivatives despite record prices, CoinDesk reported on Thursday.

Read more: Why Are Bitcoin Traders Aggressively Shorting as BTC Hits New Record High?