Fed under pressure: why Ethereum may outperform Bitcoin
Today Donald Trump again publicly pressured the Fed and Jerome Powell against the backdrop of his speech in Jackson Hole: he demanded faster and deeper rate cuts and continued personal attacks, including calls for the resignation of certain board members. For the markets, this is a signal of increasing political pressure on monetary policy right on the day of Powell's key speech.
Why this moves prices
1. Rates and the dollar. The stronger the White House pressure on the Fed to 'cut' rates, the higher the likelihood of a dovish tone from Powell — which means lower yields, lower DXY and a plus for risk assets (stocks, gold, crypto). The market is already anticipating hints of a cut in September, so any 'hawkish' notes today will be painful.
2. Crypto policy. The administration has already made several 'bullish' moves: the stablecoin law in the summer and expanding access to crypto in pension plans in August. This legitimizes the asset class and reduces the regulatory risk premium — especially for ETH and liquid altcoins.
3. Symbolic signals. The Trump family is actively promoting the crypto agenda (today's reports about Eric Trump's trip to Tokyo for the Metaplanet meeting — from the same series), which supports the narrative of the 'crypto administration'.
What does this mean right now
• If Powell sounds dovish → yields down, dollar weaker → BTC/ETH up; high beta altcoins — leaders.
• If Powell firmly pushes back against political pressure → the opposite reaction: risk-off, $BTC dominance ↑, altcoins and $ETH lag behind.
• Regardless of the Fed's tone, the already approved regulatory framework (stablecoins/pensions) is positive for crypto in the medium term — it expands the demand funnel and institutional entry channels.
Focus on ETH and altcoins
— ETH is more sensitive to real rates than BTC: dovish Fed rhetoric usually leads to an expansion of the ETH/BTC spread; hawkish — narrows it. Today's 'politicization' of the Fed increases the volatility of this pair.
— Altcoins benefit when there is a combination of 'rates↓ + regulatory clarity↑'. Risks — a sudden 'hawkish' Powell or new tariff headlines (they raise inflation expectations and force the market to demand a higher risk premium).
Tactics
1. Play scenarios, not guesses: waiting for the first lines of Powell's speech and the reaction of UST yields/DXY index — this is the main trigger for crypto in the coming hours.
2. For $ETH and liquid altcoins — use staggered entries/exits; for long-term — accumulate only on 'dovish' surprises from the Fed.
3. Monitor new steps by the administration on crypto infrastructure (pension plans/stablecoins/exchange products) — this is a structural bullish case that will survive one or two 'hawkish' speeches.
#DonaldTrump #JeromePowell #CryptoNews #Bitcoin
