TL;DR: The crypto market lost $170 billion in September 2025 due to economic pressures, leveraged sell-offs, and regulatory uncertainties, while Federal Reserve Chair Jerome Powell faces criticism from President Trump over high interest rates.
Crypto Market Decline:
- The crypto market cap fell by $170 billion during "Red September 2025," driven by macroeconomic challenges, including a strong U.S. dollar, geopolitical tensions (Israel-Iran conflict), and weak U.S. economic data.
- Over $1.65 billion in leveraged liquidations caused sharp price drops, intensifying market losses.
- Regulatory uncertainties in the U.S. and EU regarding crypto exchanges and anti-money laundering rules increased volatility.
- The historical "September Effect" and technical selling pressures worsened the downturn.
- Major cryptocurrencies like Bitcoin and Ethereum declined significantly, though some altcoins showed resilience.
Trump Criticizes Fed Chair Powell:
- President Trump called Federal Reserve Chair Jerome Powell "incompetent" for keeping interest rates high, demanding immediate cuts.
- Trump said, “Powell’s termination cannot come fast enough!” reflecting his frustration on social media.
- The federal funds rate stands at 4.25% in September 2025, down from a 2024 peak but still elevated.
- Powell cites persistent inflation and a strong labor market as reasons to maintain caution.
Background and Reactions:
- Powell was appointed by Trump in 2017 but has faced ongoing criticism and threats of removal.
- Trump has suggested he would not reappoint Powell if re-elected.
- Some market observers note that high rates partly result from Trump-era deficits and broader market factors.
- Wall Street showed little immediate reaction; investors generally favor Fed independence.
Implications:
- Political: Trump’s pressure could challenge the Fed’s independence if he returns to office.
- Economic: Lower rates may boost markets but risk higher inflation.
- Legal: Removing Powell could face constitutional challenges due to the Fed Chair’s protected status.
Next Steps:
- The Fed’s November 2025 meeting will be crucial for policy direction amid these pressures.