BTC, ETH Jumps as Trump Eases Fed & China Tensions

BTC, ETH Jumps as Trump Eases Fed & China Tensions

By Manoj Dharra

Bitcoin climbed roughly 3% after U.S. President Donald Trump reassured markets that he had no plans to remove Federal Reserve Chair Jerome Powell, easing concerns over the Fed’s independence. The president’s earlier criticisms of the central bank’s policies had rattled markets, with lingering trade tensions fueling a flight to safe-haven assets like gold.

Spot gold neared $3,500 on Tuesday amid market jitters but reversed sharply by day’s end, falling 1%. Trump’s softened stance on China—suggesting tariffs would be “substantially” reduced and expressing disinterest in “playing hardball”—provided another boost to risk assets, including cryptocurrencies.

Bitcoin spiked as high as $93,804 before paring some gains. U.S.-listed Bitcoin ETFs saw $936 million in inflows—the third-largest daily intake this year. Other major cryptocurrencies followed suit: Ether jumped 15% past $1,800, XRP and Solana moved higher, Dogecoin surged 14%, and SUI soared 29%.

SUI’s rally has been fueled by memecoins gaining traction on its network. Tokens like MUI, LOFI, and BLUB have posted impressive weekly gains—LOFI up 143% and BLUB 57%—driving increased traffic and transactions on the SUI blockchain.

Meanwhile, gold-backed tokens like XAUt and PAXG dropped 5.3% and 5%, respectively.

A separate report added momentum to the crypto space, revealing that Cantor Fitzgerald, Tether, and SoftBank are in talks to create a $3 billion investment vehicle targeting digital assets.

The broader market echoed crypto’s strength: the S&P 500 rose 2.5%, while the Nasdaq jumped 2.7%.

Liquidity Watch & Market Outlook

Despite the rally, market liquidity remains thin. USDT’s market cap grew by just $2.9 billion over the past two months—below its 30-day average. Historically, Bitcoin rallies coincide with USDT growth surpassing $5 billion, a level not yet reached.

Bitcoin recently traded between $93,000 and $98,000 for nearly three weeks. Whether it breaks out of this range remains to be seen.

Spot trading volume on centralized exchanges continues to decline, with liquidity shifting toward the futures market. While this trend is typically bullish, it also increases the risk of sharp pullbacks if over-leveraged positions are suddenly unwound.

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