The President wants lower interest rates now – and that means a higher price for bitcoin.
TORONTO, ON (April 25 2025) There’s nothing like a little political name-calling to get Bitcoin’s price roaring back into form.
Bitcoin’s price ripped back above CA$120,000 late Easter Sunday, propelled by “rising global liquidity, fuelled by an expanding M2 money supply and a weakening U.S. dollar,” according to Vincent Liu, chief investment officer at Kronos Research. As of writing, bitcoin has further rallied to CA$130,595 – the highest price the asset has seen since March.
The rally seems to have been triggered by U.S. President Donald Trump, who in an early Monday post to Truth Social called Jerome Powell – the chairman of the Federal Reserve – a “major loser.”
““Preemptive cuts” in interest Rates are being called for by many,” wrote Trump, noting falling costs in energy and food.
“With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” he continued.
By “interest rates,” Trump refers to the federal funds rate, which is the rate at which banks and credit unions lend to each other overnight to meet reserve requirements. It’s set by the Federal Reserve’s Federal Open Market Committee (FOMC) and serves as a benchmark for other interest rates in the economy. Lower interest rates = more borrowing, investment, and money printing, which means Bitcoin’s price goes up.
The Fed’s job is to adjust the federal funds rate to benefit the economy, with its two target mandates: keep inflation and unemployment low. However, most analysts – especially bitcoiners – know the Fed has other unspoken priorities as well, including preventing market crashes and banking crises, and bowing to their political masters.
These priorities are exactly what leave Powell stressed today. While the chairman has maintained an outward commitment to lowering inflation, and insisted that his institution’s decision-making remains independent of the federal government’s posturing, this has not deterred Trump from doing exactly that.
The President argued in his post that Powell has bent to political whims in the past, lowering interest rates just before the November 2024 election. “Powell has always been “Too Late,” except when it came to the Election period when he lowered in order to help Sleepy Joe Biden, later Kamala, get elected. How did that work out?” he wrote.
While the election season in the US is over, Trump is still eager to lower interest rates, which would help shore up asset markets that have crashed in the first innings of his administration due to his own widespread tariff policies. Even the Bitcoin bull market seems to have been put on hold due to the tariffs, after Trump’s initial election victory sent BTC soaring above US$100,000 on hype for a strategic bitcoin reserve.
No President has ever had to remove a sitting Fed chair, and it’s not clear that this is even within the President’s power to do so. That said, Trump has already followed through on his promise of having SEC chairman (and Bitcoin enemy) Gary Gensler removed – and that wasn’t considered possible either.
To officially fire someone is one thing, but to exert enough political pressure to force them to resign is another.
“I’m not happy with him,” Trump told reporters this week. “If I want him out, he’ll be out of there real fast. Believe me.”
Rest assured “printer is coming”—as it always does—one way or another.
Jack Mallers Named CEO of Bitcoin Treasury Firm Twenty One Capital
Jack Mallers, founder and CEO of Strike, has been named CEO of Twenty One Capital, a new Bitcoin-native company launched yesterday, backed by giants Tether, SoftBank, and Cantor Fitzgerald.
The firm, set to go public under ticker XXI, is starting with a treasury of over 42,000 BTC (valued at ~$3.9 billion), making it the third-largest corporate Bitcoin holder behind Strategy and MARA Holdings.
We’ve previously covered how other firms like MetaPlanet in Japan are copying the playbook of Saylor and Strategy and how others were taking notes. The launch of Twenty One with Jack Mallers at the helm is a prime example.
Twenty One is positioning itself as a competitor to Strategy, by focusing on Bitcoin-native operations and aiming to offer a purer vehicle for Bitcoin exposure through a public stock. The firm plans to develop Bitcoin-focused financial products, including lending platforms, Bitcoin media and advisory services, to accelerate institutional Bitcoin adoption.
Mallers has stated, “We’re not here to beat the market, we’re here to build a new one. A public stock, built by Bitcoiners, for Bitcoiners.”
Key figures include Mallers, who will continue leading Strike, and Brandon Lutnick, co-founder and chair, son of Cantor Fitzgerald’s Howard Lutnick (who is US commerce secretary).
Tether, majority owner alongside Bitfinex, contributes 23,950 BTC, with SoftBank holding a minority stake.
Strategy Bolsters Bitcoin Holdings to Over $47 Billion
Strategy added another 6,500 Bitcoin to its stash last week, spending $548 million at an average price of US$84,800 per coin.
This purchase, funded through issuing common shares, brings the firm’s total Bitcoin holdings to 538,000 BTC, valued at US$47.2 billion.
Despite market uncertainty, Strategy has consistently bought Bitcoin since mid-March, reinforcing its position as a major corporate holder.
Strategy is once again gaining on BlackRock’s IBIT Bitcoin ETF in terms of being the largest corporate public company owning BTC, with the latter now at 572,000 BTC, according to Arkham.
Bitcoin Miners Sell Off BTC to Stay Afloat
Bitcoin miners are selling more coins to cope with financial pressures, according to CryptoQuant.
On April 7, miners sold 15,000 BTC—worth at least $1.12 billion at the day’s low of under $75,000—marking the third-largest daily outflow this year. Depressed Bitcoin prices, lower transaction fees, and a record-high network hash rate have squeezed miner margins, dropping average operating margins from 53% in January to 33%.
This selling trend reflects the brutal economics of Bitcoin mining amid market volatility, as well as increased competition in the mining sector as Bitcoin’s hashrate ratchets higher.
Since the halving last year, only 3.125 BTC are mined every ten minutes, on average.
Stay humble,
Andrew
The Beaver Bulletin is a weekly newsletter on global Bitcoin adoption. To get the bulletin directly in your email inbox, subscribe here.