While traditional markets stumbled, the crypto space continued its upward momentum following fresh criticism from former US President Donald Trump directed at Federal Reserve Chair Jerome Powell.
On April 21, American stock indices took a hit — the S&P 500 fell by 2.4%, the Nasdaq lost 2.5%, and the Dow Jones dropped nearly 1,000 points, reflecting a 2.5% decline, as reported by Google Finance.
Since the start of 2025, the S&P 500 has sunk over 12%, while the Nasdaq is nearing an 18% loss, underscoring ongoing investor unease, particularly in the tech sector.
This latest dip was triggered by heightened friction between Trump and Powell, compounded by fears surrounding the impact of tariffs on trade.
Trump took to Truth Social on April 21, pressing for interest rate cuts. “With energy and food prices on the decline, and most trends pointing downwards, inflation is essentially nonexistent,” he claimed, urging preemptive action from the Fed.
He has continually pushed for lower interest rates, criticizing Powell — who has maintained the benchmark rate at 4.5% — as “Mr. Too Late” and a “major loser.”
Adding fuel to the fire, Powell recently warned that Trump’s tariff strategy could spark stagflation — a toxic mix of inflation and sluggish growth. Trump responded swiftly, renewing calls to remove Powell from his position.
The Fed is expected to keep a cautious stance during its upcoming meeting on May 7, with only a slim 13% chance of a rate cut being priced in, according to CME Fed Watch data.
Dollar Under Pressure
The US Dollar Index (DXY), which tracks the greenback’s performance against major global currencies, has dropped over 10% this year. On April 21, it hit a three-year low, sliding below the 98 mark, per TradingView data.
“Servicing dollar-denominated debt becomes easier with a weaker dollar — and that’s what the world needs right now,” said Raoul Pal, CEO of Real Vision, on April 22. “This is a key source of global liquidity and currently the main force behind the growth in global M2,” he added.
Crypto Stands Strong
In contrast to the chaos in traditional markets, cryptocurrencies remained resilient. The overall market cap held steady at $2.83 trillion as of writing, with Bitcoin playing a leading role.
Bitcoin surged to a four-week high of $88,500 on April 22, lending strength to the broader digital asset market.
“Bitcoin continues to demonstrate remarkable strength during one of the most volatile phases for global markets in recent memory,” noted analysts from Bitfinex in a recent update.
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