Bitcoin and Ether Lose Gains Following Fed Chair Powell’s Hints at Upcoming Rate Cut
August 25, 2025 — CNBC Crypto World
Bitcoin and ether, two of the leading cryptocurrencies, erased recent gains after Federal Reserve Chair Jerome Powell hinted at a potential interest rate cut in upcoming policy decisions. The comments from Powell tempered investor enthusiasm, reversing positive momentum that had pushed digital assets higher earlier in the week.
Ether, in particular, had surged to a fresh record over the weekend before pulling back at the start of the trading week. Bitcoin similarly saw its earlier gains vanish as traders digested the Federal Reserve’s possible pivot on monetary policy.
The market reaction highlights the sensitivity of cryptocurrencies to broader macroeconomic signals, especially changes to U.S. interest rates. Investors typically view rate cuts as stimulative for risk assets, but Powell’s nuanced remarks suggested caution, provoking a mixed response from crypto traders.
In related news, Gemini, a prominent cryptocurrency exchange, announced the launch of a new credit card developed in partnership with Ripple’s XRP. The card offers holders crypto rewards of up to 4% on select purchases, aiming to strengthen adoption by integrating cryptocurrency rewards with everyday spending.
CNBC Crypto World also spotlighted Wyoming’s evolution as a burgeoning crypto hub. State-level initiatives and regulatory frameworks have positioned Wyoming to become a major player in advancing crypto innovation and infrastructure, with recent moves designed to bolster its leadership in the sector.
As the cryptocurrency market continues to respond dynamically to regulatory cues and technological advancements, market participants remain closely watchful of signals from the Federal Reserve and other key policymakers.
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Reported by MacKenzie Sigalos, Jordan Smith, Talia Kaplan, and Christian Nunley.