Trump fires, dollar falls: Crypto next?

August 26, 2025

 

Reading time: 5 minutes

Trump vs Fed: Dollar wobbles, crypto holds steady

Key points:

  • Trump’s attempt to fire Fed Governor Lisa Cook over alleged mortgage fraud has sparked legal challenges and renewed concerns over the central bank’s independence.

  • Analysts have warned of dollar weakness and political influence over monetary policy. The U.S. dollar weakened on the news, while Bitcoin and crypto markets showed relative calm.

News - In an unprecedented move, U.S. President Donald Trump announced the dismissal of Federal Reserve Governor Lisa Cook, accusing her of falsifying mortgage documents. The White House posted a removal letter on social media, citing “sufficient cause” for termination.

Cook, however, rejected the claim outright, calling the move unlawful. Through her lawyer, Abbe David Lowell, she argued that “no cause exists under the law” and vowed not to resign. Since its founding in 1913, no president has ever fired a Fed governor. Trump’s move, if upheld, would mark the first constitutional test of the Fed’s independence. Cook added that her 14-year term, confirmed in 2023, runs through January 2038 and cannot be cut short by presidential fiat.

Legal experts warn the firing could face immediate court challenges. Trump invoked the Fed’s charter clause allowing removal “for cause,” but analysts note it has never been applied in this way. His actions, coupled with his recent pressure on Chair Jerome Powell to signal rate cuts, have heightened fears of political interference in monetary policy.

Markets react cautiously - The firing rattled investors, who were quick to digest the implications. U.S. equities and futures reflected unease, with the dollar sliding against major currencies. Yet the immediate crypto response was subdued. Bitcoin in particular held steady, showing relative calm compared with fiat turmoil. 

For many traders, the bigger picture remains the Fed’s trajectory on rates rather than the political theater itself. They see the shake-up as an opening for Trump to stack the Fed with more dovish voices, raising the likelihood of faster rate cuts.

Analysts from IG, OCBC, and Commonwealth Bank of Australia warned that Fed credibility and dollar trust are at risk. “It’s chaos. There’s no stability,” said State Street’s Bart Wakabayashi in Tokyo, echoing growing concern about U.S. financial reliability.

Implications for crypto - Prediction markets suggest Cook is likely to survive the attempt, but uncertainty adds to volatility. For digital assets, analysts noted the episode highlights why Bitcoin is increasingly seen as a safeguard when confidence in central bank independence weakens.

The muted reaction from Bitcoin, steadily gaining 0.3% while the dollar fell, reinforced its narrative as an alternative store of value when monetary policy credibility is in doubt, and if fiat instability grows, today’s calm may be the calm before a bigger storm.

Bitwise pushes for first U.S. Chainlink ETF

Key points:

  • Bitwise has filed with the SEC to launch the first U.S. spot Chainlink ETF, offering regulated exposure to LINK.

  • The move highlights growing institutional demand for decentralized oracle infrastructure, with Coinbase Custody set to hold the tokens.

News - Bitwise Asset Management submitted an S-1 filing to the U.S. Securities and Exchange Commission on August 26 for a proposed Bitwise Chainlink ETF, a spot fund designed to track the price of LINK. If approved, it would be the first ETF in the U.S. providing direct exposure to the Chainlink token.

The filing outlines a Delaware trust structure, with shares backed by LINK reserves custodied by Coinbase Custody Trust Company. Transactions would be facilitated through Coinbase Prime as execution agent, while pricing is tied to the CME CF Chainlink–Dollar Reference Rate (New York Variant). The trust will be passively managed, with no staking or hedging strategies included.

Chainlink has become a critical piece of decentralized finance, supplying off-chain data to smart contracts across major blockchains. It has also expanded into traditional finance, securing partnerships with Swift, Visa, and JPMorgan. For Bitwise, the ETF represents an effort to bridge decentralized infrastructure with regulated markets.

Why Chainlink matters - LINK ranks as the 11th-largest cryptocurrency by market capitalization and plays a vital role in powering data flows between real-world markets and blockchain systems. Its integration with financial giants positions it as more than just a DeFi token, making institutional exposure increasingly attractive.

ETF momentum beyond Bitcoin and Ethereum - The proposal comes as fund managers race to broaden crypto ETFs beyond the usual Bitcoin and Ethereum. Europe already lists Chainlink ETPs through firms like 21Shares and VanEck. A U.S.-listed version could open doors for wider institutional participation and potentially set precedent for future single-asset altcoin ETFs.

Solana treasuries grow, but market bears bite

Key points:

  • Solana dropped nearly 10% despite Pantera Capital’s $1.25 billion plan for a Nasdaq-listed Solana treasury vehicle.

  • Futures open interest fell 11% to $11.38 billion, while technicals flashed a looming bearish MACD crossover.

News - Solana’s (SOL) price tumbled almost 10% in the past 24 hours, even as Pantera Capital confirmed plans to raise up to $1.25 billion to convert a Nasdaq-listed firm into a Solana treasury vehicle. Dubbed “Solana Co.,” the entity would hold SOL as its primary reserve, with $500 million raised initially, $750 million through warrants, and $100 million committed from Pantera itself.

The initiative would make Solana Co. the largest corporate SOL reserve, eclipsing existing public treasuries that currently hold about 3.4 million tokens. However, the announcement failed to offset broader market weakness. SOL futures open interest slid 11% to $11.38 billion, signaling traders were closing positions. At the same time, chart indicators highlighted a bearish MACD crossover, suggesting the pullback could deepen toward $171.88 if selling persists.

Treasury push beyond Pantera - Pantera’s move comes amid wider momentum for Solana treasuries. Galaxy Digital, Multicoin Capital, and Jump Crypto are collectively working on a $1 billion SOL fund with backing from the Solana Foundation and Cantor Fitzgerald as lead banker. Other corporates including Upexi, DeFi Development Corp, and Sharps Technology have added hundreds of millions in SOL reserves this year.

Network strength vs market weakness - Fundamentals remain resilient despite the price slide. Solana has led all blockchains in revenue for 23 straight weeks, generating $15.95 million most recently. Analysts see this consistency as a driver of long-term institutional confidence, even as short-term technicals point to further downside. Some traders project a rebound if demand returns, with resistance near $195–$211 and longer-term targets up to $222–$360.

Gemini’s XRP card flippening: App store surge and IPO ambitions

Key points:

  • Gemini leapfrogged Coinbase in U.S. App Store finance rankings after launching its XRP rewards credit card with Ripple and Mastercard.

  • The move strengthens Gemini’s consumer-facing presence as it prepares for a Nasdaq IPO under ticker GEMI.

News - Gemini, the exchange founded by Cameron and Tyler Winklevoss, has overtaken Coinbase on the U.S. App Store finance rankings following the launch of its XRP rewards credit card. The limited-edition card, developed in partnership with Ripple Labs and Mastercard, offers up to 4% cashback in XRP across categories like fuel, EV charging, dining, and groceries.

According to Sensor Tower data, Gemini climbed as high as 11th place in the finance category while Coinbase slipped to 20th, despite Coinbase’s daily trading volumes being more than triple Gemini’s. Ripple CEO Brad Garlinghouse hailed the launch as a milestone, calling it “a great time to be alive for the XRP family.”

A strategic push for market share - The card launch has quickly become a differentiator for Gemini in the crowded exchange space. With instant XRP rewards and no waiting period, Gemini is directly targeting the XRP community while showcasing real-world crypto utility. The addition of merchant deals offering up to 10% back in XRP further boosts its appeal.

Ripple partnership and IPO momentum - The timing coincides with Gemini’s IPO filing under the ticker GEMI. Ripple extended a $75 million credit facility to support Gemini’s listing, potentially expanding to $150 million, while also pushing its RLUSD stablecoin for U.S. spot trading. With Goldman Sachs, Morgan Stanley, and Citigroup leading the syndicate, Gemini is positioning itself to become the third U.S. exchange to go public.

XRP price volatility lingers - XRP itself has struggled to hold above $3.00, sliding 3.2% to $2.91 during the August 25–26 window before rebounding modestly. Analysts flagged $2.84 as near-term support, while resistance at $2.96 could cap gains unless institutional inflows build.

Interesting facts

  • BitClout, launched in March 2021, let users buy and sell “creator coins” pegged to individuals’ reputations, essentially making social media influence tradable. It runs on a custom proof-of-work blockchain (DeSo) and reserved thousands of celebrity accounts at launch.

  • Bitcoin once lost to a landfill remains a digital treasure hunt. In 2013, computer engineer James Howells mistakenly discarded a hard drive containing private keys for ~8,000 BTC, worth hundreds of millions today, in a Welsh landfill. Despite the value, a UK court dismissed his attempt to recover it in January 2025.

  • Over half of all cryptocurrencies ever created are now dead. As of April 2025, more than 52.7% of the 6.9M+ crypto projects launched since mid‑2021 have no longer been trading, including 1.82M tokens that failed just in Q1 2025, nearly half of all project collapses across that period.

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Top 3 coins of the day

Hyperliquid (HYPE)

Key points:

  • At the time of writing, HYPE changed hands near $45 after rising 5.6% over the past day.

  • Price closed back above the 9-day SMA while the AO stayed positive with the latest bar increasing, as volume stayed moderate.

What you should know:

HYPE climbed to $45 after rebounding off the 9-day Simple Moving Average (SMA) near $43. The short average held as a near-term guide, and the Awesome Oscillator (AO) remained positive with a higher green print, showing that momentum had improved from earlier in the week. Volume was steady to slightly higher, giving the move some backing without signaling a surge. Away from the chart, continuing protocol buybacks and renewed whale interest around $45 to $50 supported sentiment by tightening liquid supply. Support lies at $44–$43, with $41–$42 below. Resistance can be found at $47 first, then the $50 area. Traders need to watch whether the AO builds above zero and whether volume expands on any push through $47.

Key points:

  • CRO was last seen near $0.158, up about 2.5% over the past day.

  • Price stayed above the 9-day SMA as DMI kept +DI over −DI with ADX near 30, while volume was mixed.

What you should know:

CRO advanced to $0.158 after a steady rebound that kept candles above the 9-day SMA around $0.150. The Directional Movement Index (DMI) continued to favor buyers with +DI over −DI, while ADX hovered near 30, reflecting a firm trend in place after cooling from earlier highs. Volume was uneven versus July’s surge, so follow-through still depended on participation. Off the chart, attention centered on ETF speculation that kept CRO in focus, alongside Cronos PoS v6 improvements that reinforced infrastructure confidence. Support lies at $0.155–$0.150, with $0.145 below. Resistance can be found at $0.160–$0.162, then the $0.170 area. It’s essential to monitor whether volume expands on attempts through $0.162 and whether +DI stays above −DI to preserve the trend.

Mantle (MNT)

Key points:

  • MNT climbed 1.1% over the past day to settle near $1.14.

  • Bands stayed wide as price hovered below the middle band, while the CMF held positive near +0.13 and volume eased from last week’s spikes.

What you should know:

MNT stabilized around $1.14 after retreating from the mid-August peak near $1.45. Price slipped under the Bollinger midline near $1.18 and traded within a wide envelope, indicating the rally had cooled but volatility persisted. The Chaikin Money Flow (CMF) stayed above zero, so net inflows remained intact even as they softened versus earlier highs. Volume moderated after the heavy print around the listing window. Off the chart, post-listing profit-taking after Coinbase International’s August 21 perps and ongoing Bybit promotions shaped flows and sentiment. Support lies at $1.12–$1.10. Resistance sits near the midline at $1.18, then $1.30–$1.35, with the upper band around $1.41. Keep an eye on whether the CMF holds above zero and whether volume expands on pushes through $1.18.

Used by Execs at Google and OpenAI

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