The crypto market is back in full swing as Bitcoin consistently reaches new all-time highs. News surrounding tariffs and interest rates persists, but their immediate impact on market sentiment appears to be waning.

Market Overview

US stock futures for Tuesday saw declines across all three indices, each falling over 0.35%. Oil futures hovered around $68 per barrel. Gold saw a slight increase to $3383 per ounce.

This week, the US market will receive crucial CPI inflation data and a series of statements from senior Federal Reserve officials, all of which will directly influence interest rate expectations and market volatility. Crypto is also in the spotlight as the US House of Representatives considers three important bills:

• CLARITY Act: Laying the legal foundation for crypto.
• GENIUS Act: Providing a clear legal framework for stablecoins.
• CBDC Anti-Surveillance Act: Preventing the deployment of surveillance-oriented CBDCs.

The crypto market has surged back to life as Bitcoin continued to hit new highs, reaching $119,000 and then $122,000. Most altcoins also saw gains. The overall crypto market capitalization climbed to $3.89 trillion.

Bitcoin's price continues to follow global M2 money supply trends (which includes cash, savings deposits, etc.—a key indicator reflecting the economy's liquidity). This strong correlation highlights Bitcoin's increasing sensitivity to broader monetary policy and liquidity injections.

Bitcoin's price is surging due to strong buying pressure from multiple fronts, particularly from institutional investors like MicroStrategy, publicly listed companies, El Salvador, and robust inflows into Bitcoin ETFs. Last week saw a new record, with 35 companies confirming BTC purchases totaling over 4,700 BTC. For two consecutive days, Bitcoin ETF inflows surpassed $1 billion, led by BlackRock's IBIT. Ethereum and Solana are also beginning to attract significant capital, even without official ETFs yet.

The majority of BTC purchases are occurring through OTC (over-the-counter) desks, which do not immediately affect market prices but contribute to reducing the effective supply on spot exchanges—leading to an indirect price appreciation effect. When OTC supply dries up, demand will shift to spot exchanges and could create a supply shock. This price rally is being led by large institutions, a divergence from previous cycles primarily driven by retail investors. This could signal a more sustainable growth cycle for the crypto market.

Tariff Updates: Trump's Global Trade Stance

President Trump announced a 30% tariff in letters sent to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, effective August 1st. He warned that if the EU or Mexico retaliated by increasing tariffs, the US would add that exact percentage to the current 30% tariff rate.

President Trump also emphasized that the EU, as a bloc, exports more to the US than any single country, surpassing even Canada and Mexico. Although major partners, besides the EU and Mexico, Canada has also received a 35% tariff notice. He stated that parties could still negotiate before or after the tariff effective date, but tariffs would be implemented as scheduled and only removed if negotiations are successful.

This information has impacted the US stock market, causing futures indices like Nasdaq and S&P to decline slightly. However, Bitcoin remained completely unaffected, even continuing to surge and setting new highs above $119,000. This demonstrates that the crypto market is becoming less sensitive to geopolitical news related to tariffs, while the stock market still shows a certain reaction. This divergence highlights Bitcoin's growing resilience as a macro hedge.

Rumors of Fed Chair's Resignation Spread Widely

William J. Pulte, Chairman of the Federal Housing Finance Agency (FHFA), shared a news snippet suggesting that Federal Reserve Chairman Jerome Powell is considering resignation. The source of this information remains unclear, though it attributes the sentiment to Pulte.

Meanwhile, Vice President JD Vance posted on X that the Fed is completely misguided, reiterating President Trump's statement: "They are too slow" in dealing with inflation under Biden and in cutting interest rates now. A White House economic advisor also stated that, by law, the President has the authority to remove the Fed Chair for "just cause." However, this reason must be clearly proven, such as Powell intentionally harming the US economy or being mentally unfit to lead the Fed—conditions that are very difficult to meet.

It appears that President Trump is shifting his strategy, no longer solely criticizing the Fed for slow rate cuts but focusing on accusations that Chairman Powell has been opaque about spending allocated by Congress. Pressure from various fronts—the White House, Congress, and the public—is mounting as the US economy remains constrained by high interest rates. Many Americans face difficulties buying homes or cars due to excessive borrowing costs, leading to unprecedented public frustration.

Politicians are also exerting significant pressure on the Fed in anticipation of next year's re-election campaigns, as low interest rates are what they hope for to support economic growth and improve citizens' lives. If interest rates fall, capital will flow more easily, creating favorable conditions for investment, consumption, and, naturally, positively supporting asset markets—including Bitcoin. The increasing political scrutiny and potential for leadership change at the Fed could be significant catalysts for future market movements.

Bloomberg Accuses Binance of Aiding Trump for CZ's Pardon

According to a Bloomberg report, crypto exchange Binance is accused of secretly assisting in the development and promotion of the USD1 stablecoin, which is reportedly owned by President Donald Trump's family, through the company World Liberty Financial. Bloomberg asserts that USD1's original source code was developed by Binance itself.

The report also states that an investment fund from the UAE used USD1 to purchase $2 billion worth of Binance shares, instead of using other stablecoins like USDT or USDC. Binance allegedly further promoted USD1 to over 275 million global users, increasing its value and benefits for the Trump family. According to estimates, the collateral for USD1, held in Binance wallets, could generate tens of millions of dollars annually in interest for the Trump family.

Bloomberg claims CZ is seeking a presidential pardon. CZ is currently serving a 4-month prison sentence and cannot manage the company. Bloomberg suggests he is seeking a pardon, a condition that could help CZ return to lead the exchange.

CZ has strongly refuted the allegations, calling the article fabricated and a result of unfair competition, sponsored by a rival. He also hinted at the possibility of suing Bloomberg again—after the news agency had to apologize to him in 2024 concerning a 2022 defamation lawsuit. Concurrently, CZ also reshared another post accusing Coinbase as the "anonymous source" behind the attack campaign targeting Trump and Binance to protect its own interests. This ongoing public feud between major crypto players and traditional media highlights the intense competition and political undercurrents in the digital asset space.

Other Key Crypto & Market Updates

Tether will cease supporting USDT on 6 less-used blockchains starting September 1, 2025: Omni, SLP (Bitcoin Cash), Kusama, EOS, Algorand, and Simple Ledger Protocol. The reason cited is a significant decline in transaction volume on these networks over the past two years. Tether will focus development on Layer 2 platforms and next-generation blockchains. This strategic shift by the largest stablecoin issuer reflects the evolving blockchain landscape.

Pump.fun recently conducted a notable token offering (ICO), raising $500 million in just 12 minutes from retail investors across various exchanges, including Bybit, Kraken, and KuCoin. They sold 125 billion PUMP tokens at $0.004 each, valuing PUMP at $4 billion, making it the 3rd largest ICO in crypto history. After purchase, users must wait 48-72 hours for tokens to be transferred to their wallets and cannot trade during this period. This ICO accounted for 33% of PUMP's total token supply. This successful ICO highlights continued retail interest in new crypto projects.

Sources

• Bloomberg
• CoinDesk
• U.S. Treasury
• TradingView
• Reuters
• SEC
• White House Press Office
• CryptoQuant
• Glassnode
• Federal Housing Finance Agency (FHFA)
• Vice President JD Vance (X/Twitter)
• Tether
• Pump.fun
• Trueflation

Disclaimer

This article is for informational purposes only and should not be considered financial advice. Please do your own research before making investment decisions.