Bitcoin Price Volatility Explodes, Fed Signals Rate Cuts, U.S. Takes Stake in Intel, Dollar Reset Unpacked
News Block #102 (08/25/2025)
Listen to the latest episode of the News Block below.👇
Bitcoin Price Volatility Explodes as Fed Signals Rate Cuts
Bitcoin volatility has been surging. In the span of about a week, Bitcoin’s price hit a new ATH, retreated back, surged on dovish news out of the Fed, and then flash crashed back down near $110,000 amid reports of a whale selling 24,000 Bitcoin worth more than $2.7 billion!
I covered the choppy price action in my latest interview with Preston Pysh, who shared his views on whether Wall Street is manipulating Bitcoin’s price via paper trades. However, I’d also like to highlight two tweets related to Bitcoin’s price that caught my attention.
The first was from Vijay Boyapati, who wrote:
And the second came from analyst Willy Woo, who wrote:
Regardless of what’s causing the sell pressure, Bitcoin is down to start the week, and people are feeling bearish in a bull market. However, I think this dip is just a nice buying opportunity, and we may get more at even lower prices.
Alright let’s turn now to the macro side of things and cover what happened at Jackson Hole last week, where top central bankers gathered for the annual economic symposium. It actually wasn’t the only big meeting in town. Just an hour away, crypto executives and some of the biggest names in finance were attending the Wyoming Blockchain Symposium.
And the guest list there? SEC Chair Paul Atkins spoke, as did Senator Cynthia Lummis, and not one, but two sitting Fed governors: Christopher Waller and Michelle Bowman.
Now, why does that matter? Because both Waller and Bowman are being talked about as potential replacements for Jerome Powell when his term ends next May. And both of them already broke with Powell in July, voting against the decision not to cut rates.
At the blockchain symposium, Waller said, “There is nothing to be afraid of when thinking about smart contracts, tokenization, or distributed ledgers.”
And Bowman added, “We need a clear, strategic regulatory framework that will facilitate the adoption of new technology.”
Hearing comments like that from two leading candidates for Fed Chair is obviously very bullish for the crypto industry at large. It shows how far it’s come in a year and how much weight it now carries.
But, of course, Powell wasn’t about to let crypto steal his spotlight. After all, this was his last time speaking at Jackson Hole as Fed Chair. He was going to make it count.
Powell spoke for over twenty minutes, but the market only needed to hear two sentences from him:
“With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance. Monetary policy is not on a preset course.”
Translation: “Rate cuts are coming.” And markets loved it. Stocks jumped, bonds rallied, and Bitcoin popped. Powell’s message was clear: the liquidity dial is about to be turned up.
Also, I’d like to note that some prominent voices on Bitcoin X interpreted Powell’s comments as the Fed suddenly doing away with its 2% inflation mandate. I do NOT agree with these observations. In fact, after examining the full text, I’d say Powell actually reaffirmed the 2% inflation mandate. Decide for yourself. 👇
“Price stability is essential for a sound and stable economy and supports the well-being of all Americans. The inflation rate over the longer run is primarily determined by monetary policy, and hence the Committee can specify a longer-run goal for inflation. The Committee reaffirms its judgment that inflation at the rate of 2 percent, as measured by the annual change in the price index for personal consumption expenditures, is most consistent over the longer run with the Federal Reserve’s statutory maximum employment and price stability mandates. The Committee judges that longer-term Statement on Longer Run Goals and Monetary Policy Strategy 2 inflation expectations that are well anchored at 2 percent foster price stability and moderate long-term interest rates and enhance the Committee’s ability to promote maximum employment in the face of significant economic disturbances. The Committee is prepared to act forcefully to ensure that longer-term inflation expectations remain well anchored.”
Zooming out, the full speech did make me wonder whether Trump and Bessent’s recent pressure on Powell influenced things.
Powell insisted this change wasn’t about politics, but lately, the calls for him to cut have been constant. The Administration wants rates down—full stop. And with trillions in debt rolling over soon, it’s not hard to see why.
The risk is that monetary policy is becoming more politically driven. Last week, the Financial Times ran a piece that warned about a new era of fiscal dominance, when central banks are under increasing pressure to keep interest rates low to offset the cost of record government borrowing.
Warning about this dynamic is absolutely warranted, too. We’ve seen where this road leads — look at Argentina or Venezuela. In the end, it’s always the currency that pays the price.
And Trump isn’t waiting around for Powell to listen to him either. He already seems to be making a plan to get his way by reshaping the Fed board.
Recently, we discussed how the unexpected resignation of Fed governor Adriana Kugler allowed Trump to fill the vacancy with someone from his administration, Stephen Miran.
Keep in mind that Fed governors vote on all interest rate decisions. So, if Miran’s nomination is accepted, he’ll have a say at every upcoming Fed meeting on where interest rates should go.
And now, it looks like Trump is after another board seat — this time, Dr. Lisa Cook’s.
Everything came to a head last Friday, when Federal Housing Director Bill Pulte claimed he had obtained evidence that Dr. Lisa Cook committed mortgage fraud in 2023 and called for her to resign immediately.
She’s being accused of falsifying documents by claiming two different properties as her primary residence to obtain more favorable mortgage terms.
President Trump was quick to chime in, saying that if Cook doesn’t resign, he’ll fire her. Cook denied any wrongdoing and said she has no intention of “being bullied to step down from her position.”
The big takeaway is this: if Trump removes Cook, he gets to fill another board seat — giving him four out of seven governors, a majority large enough to sway Fed policy for years. That’s critical because Cook has consistently sided with Powell against rate cuts, while Trump’s appointees have all signaled they favor cutting aggressively.
If all of this sounds like speculation, I get it. But this is exactly what Trump is telegraphing. He isn’t even trying to hide it.
On Truth Social, Trump posted an image of all the Fed governors below. In it, Trump explicitly politicizes the Fed by dividing governors into Biden vs. Trump camps.
He then went one step further and singled Cook out by placing a red X over her picture with the word ‘fraudster’ next to her name.
For regular listeners of this show, none of this should come as a surprise. Guests like Lyn Alden have been warning for years that the U.S. has entered a period of fiscal dominance, where government solvency takes priority over currency stability. And in that environment, the Fed’s independence inevitably erodes.
However, the key thing to understand is that losing Fed independence is a symptom, not the disease. The real cause is decades of reckless fiscal policy and money printing. And that’s precisely what makes this bullish for Bitcoin.
Because every time the traditional monetary system becomes more politicized, it strengthens the case for an apolitical one. Every time more easy money enters the system, it reinforces the case of owning hard money that can’t be printed.
It’s no surprise that Bitcoin and gold both surged this week in response to Jackson Hole. The real question is: in the decades ahead, which symposium will history remember — the bankers in Jackson Hole, or the builders in Wyoming?
I know where I’m placing my bet.
The News Block is powered exclusively by Ledn.
Ledn is the global leader in Bitcoin-backed loans, issuing over $9 billion in loans since 2018, and they were the first to offer proof of reserves.
With Ledn, you get custody loans, no credit checks, no monthly payments, and more.
Visit LEDN.io to learn more.
U.S. Government Takes a 10% Equity Stake in Intel
Another headline that grabbed almost as much attention as Jackson Hole was President Trump's announcement that the U.S. government will take nearly a 10% equity stake in Intel.
The deal was structured through President Biden’s 2022 CHIPS Act. To break it down, the government had already set aside grants to help Intel build domestic chip capacity. But instead of giving that money as a no-strings-attached subsidy, the White House negotiated a 10% equity stake.
In other words, taxpayer subsidies that were once cash out the door are now being converted into actual ownership in the company.
On the surface, this seems like a brilliant way to secure America’s semiconductor future. But it’s also controversial. Critics are concerned that it blurs the line between state control and free markets, with Washington now being Intel’s largest single shareholder.
And here’s the bigger point — this isn’t happening in isolation. The Intel stake is part of a string of recent moves by the Trump administration that show a new brand of economic statecraft.
Earlier this year, the White House secured a “golden share” in U.S. Steel, giving Trump veto power even after its takeover by Japan’s Nippon Steel. And just weeks ago, the Pentagon revealed it had taken a $400 million equity stake in MP Materials, a rare-earths miner.
If you’re not following the rare earths story, I highly recommend reading up on it. The best analyst on the subject has been Luke Gromen, who has clarified why rare earths are a critical priority if we want to maintain even a semblance of dollar dominance. Why? The U.S. military supposedly backs the dollar—but the U.S. military itself relies on Chinese rare earths for the technology that powers our fighter jets, missiles, and defense systems. In other words, we may be able to print the dollar – but in reality, our economic and military strength rests on resources we don’t control—and that dependency is a strategic vulnerability that could rewrite the balance of power.
These recent moves by the Trump Administration send a clear message: the U.S. is no longer leaving strategic industries entirely to the private market. It’s stepping in to re-shore supply chains and secure critical sectors.
To understand why, we have to zoom out.
Since 1971, when the dollar detached from gold, the world has run on one bargain: America supplies dollars, the rest of the world supplies goods, and surplus nations recycle their earnings into U.S. Treasuries.
That constant global demand for Treasuries kept the dollar structurally strong. This was great for financing Washington’s deficits, but terrible for U.S. export competitiveness because a stronger dollar made our goods more expensive overseas.
And that's the trap. The very thing that kept the dollar king — trade surpluses being recycled back into Treasuries — also kept the currency too strong for U.S. industry to compete globally. Over time, that dynamic hollowed out American manufacturing while the debt exploded to over $37 trillion.
Today, it’s becoming evident that the system is no longer working in America’s favor. The pandemic exposed our dependence on other nations for critical materials. And now, interest costs on the debt have ballooned into one of Washington’s biggest expenses.
This may be precisely what Treasury Secretary Scott Bessent hinted at before he took office when he talked about wanting to be part of “a global economic reordering.”
So what exactly does Bessent mean when he says “reordering?”
Well, if I had to guess, at its core, is the idea that if America wants to reindustrialize, the dollar has to weaken. And for the dollar to weaken, it can’t be the primary global reserve asset anymore.
The old system of foreigners buying Treasuries has to give way to a new system where global capital is funneled into U.S. factories, supply chains, critical technologies, and other reserve assets. Instead of just saying, “Fund our deficits,” Washington is now also saying, "Invest in our businesses and infrastructure, too.”
That shift is massive and messy. Fewer Treasury buyers mean more pressure on the Fed to eventually step in, while reshoring the industrial base raises costs. Together, those point to a structurally inflationary environment.
When push comes to shove, the dollar cannot remain the system's centerpiece if America wants a weaker currency and a manufacturing revival. Neutral reserve assets have to take on a larger role — historically, that meant gold, and increasingly today, it also means Bitcoin.
So, Intel’s 10% deal isn’t just about semiconductors. It’s a signpost that the old fiat monetary order in place since 1971 is breaking down, and a new system — built on weaker dollars, neutral reserve assets, and hard money — is starting to take shape.
The last thing I’ll say about this news is that it concerned some Bitcoiners, not only because it hinted at communism but also because it showed that the government is willing to come in and nationalize companies.
The concern is that this sets a precedent that will allow the government to one day take ownership of a public bitcoin treasury company to effectively seize the bitcoin.
As always, this highlights the importance of understanding the tradeoffs and additional risks of buying and holding spot bitcoin in self-custody compared to everything else in the market today.
Survey Reveals That Most Investors Still Not Allocated to Bitcoin
Before we wrap up, let’s hit a few quick stories that caught my eye this week.
First, SoFi is diving deeper into Bitcoin. The bank just announced a partnership with Lightspark to power international money transfers over the Bitcoin Lightning Network. This means that SoFi’s more than 10 million customers will soon be able to send money worldwide instantly, 24/7, and at a fraction of the cost of traditional alternatives.
David Marcus, the CEO of Lightspark, called it “a significant milestone,” adding that SoFi is the first U.S. bank to use Bitcoin and the Lightning Network to offer real-time global payments. That’s a big deal for adoption.
Second, regulators continue to make moves. This past week, the CFTC launched the next phase of its “crypto sprint,” this time focusing on rules for registration, custody, and trading. Why does that matter? It’s all about giving institutional investors even more clarity so they feel comfortable allocating to Bitcoin.
Believe it or not, most money managers still haven’t despite all this progress. Dan Tapiero recently shared a Morgan Stanley survey showing that 82% of respondents still don’t own any cryptocurrency. Also, according to the survey, fewer people are long Bitcoin today than back in 2022.
That’s insane to me! It’s just another reminder of how early we really are.
So if there’s one thread that runs through everything we talked about this week — from Powell signaling cuts, to Trump reshaping industry, to regulators warming up, and investors still sitting on the sidelines — it’s this: the old monetary order is creaking, and a new one is rising. And most people are still sleeping on it.
And Bitcoin? Well, it’s right at the center of everything.
Until next week, keep stacking.
- Nat
If you enjoyed reading this post, you should consider subscribing to the News Block.
NEW: Who's Selling Bitcoin? Preston Pysh on Bearish Sentiment, Bitcoin Treasury Warning Signs, and Ponzis
In this episode of Coin Stories, Natalie Brunell is joined by investor Preston Pysh to discuss:
Bearish sentiment and panic hitting Bitcoin market and price
Why people are upset about MSTR guidance change
What is a preferred stock and why do companies issue them
The REAL Ponzi scheme in this market
Warning signs in Bitcoin treasury companies
Why people are so against Bitcoin
Make sure to listen to my latest Coin Stories episodes, including Shirish Jajodia, Tom Lee, and Peter McCormack.
Listen on Fountain and Earn Bitcoin: Click here
Listen on Apple Podcasts: Click here
Listen on Spotify: Click here
Listen on YouTube: Click here
Links to Items Mentioned in this Issue:
SEC Chair Attends Wyoming Blockchain Symposium
Jerome Powell’s Jackson Hole Symposium Speech
Crypto Industry Takes Over Jackson Hole
Crypto Industry Hosts Rival Gathering in Jackson Hole
Christopher Waller’s Comments from Crypto Symposium
Fed’s Lisa Cook Says She Will Not Be Bullied by Trump
Trump Says He Will Fire Fed Governor Lisa Cook
FT: Investors Warn of “Era of Fiscal Dominance”
Powell Indicates that the Fed May Restart Rate Cuts
Stock and Bond Market Rally After Powell’s Speech
David Marcus’s Tweet on Sofi and Lightspark Partnership
Pulte’s Tweet Asking For Dr. Lisa Cook’s Resignation
Pulte’s Tweet Announcing Evidence of Cook’s Fraud
Donald Trump’s Post on the Federal Board of Directors
Fed’s Cook Says She Won’t Be Bullied Into Resigning
US Takes Nearly 10% Intel Stake, Clinching Deal
SoFi Announces Partnership with Lightspark
CFTC Launches Next Phase of “Crypto Sprint”
Dan Tapiero’s Tweet on Morgan Stanley Survey
The Pentagon Invests In Rare Earth Miner