Dear reader,
This Week in Crypto: Fed Uncertainty, Trump-Powell Clash, China Tariffs Escalate, Gold Surges, and Solana’s Rise
This past week offered no shortage of volatility—driven by political conflict, aggressive trade policy shifts, and major movements in both traditional and digital markets.
On Wednesday, Federal Reserve Chair Jerome Powell announced that interest rates would remain unchanged. His cautious “wait-and-see” approach reflects the economic headwinds caused by the White House’s latest tariff escalation. President Trump’s subsequent public demand for Powell’s removal—saying his “termination cannot come soon enough”—sent an unsettling message to investors and further clouded the Fed’s forward guidance.
At the center of market anxiety is the trade war between the U.S. and China. The United States has now imposed tariffs as high as 245% on Chinese imports, citing national security risks. In response, China hiked tariffs on U.S. goods to 125% and imposed new restrictions on key exports, including high-tech materials and even cultural imports like Hollywood films. With the average U.S. tariff rate now at its highest since 1901, economists are warning of a serious strain on global trade and supply chains. The World Trade Organization has downgraded global trade volume forecasts once again, pointing to deepening contraction, especially in export-reliant economies.
In the midst of this uncertainty, gold has reasserted itself as a safe-haven asset. The price surged to a record high of $3,357.50 per ounce on Thursday, gaining nearly 12% over the past month and more than 40% year-over-year. Institutional demand has grown steadily as investors look for protection from inflation, geopolitical instability, and supply chain disruptions.
Meanwhile, digital assets have remained surprisingly resilient. Bitcoin closed the week near $86,500, up nearly 4%, while Ethereum hovered above $1,590 with consistent on-chain activity. Stablecoins like USDT and USDC continued to anchor liquidity across decentralized markets. But the standout performer was Solana. Despite significant whale movement and large token flows, SOL maintained strength above $100 and tested resistance near $115. Analysts point to strong developer momentum, ecosystem growth, and key technical upgrades as reasons for its outperformance. If momentum continues, we could see SOL aiming for $140 to $150 in the coming weeks.
In short: the traditional financial world is navigating turbulence while certain crypto assets—especially Solana—are beginning to shine as viable alternatives. Gold’s rally is also a telling signal: investors are actively seeking stability amid a political and economic landscape that remains anything but.
This Week’s Headlines
Bitcoin in Standstill at $85K as Trump Increases Pressure on Fed’s Powell: A sharp plunge in the Philadelphia Fed manufacturing index coupled with rising prices added to U.S. stagflation fears amid the tariff war.
Chances of a Fed put are low, given the uncertain economic picture: As uncertainty reigns, the Philly Fed manufacturing index fell to a multi-year low, but layoffs have slowed
SOL remains bullish amid broader market stagnation: The asset surged over the past seven days to reach its highest-ever weekly close on the SOL/ETH pair
US Fed chair signals easing of crypto rules for banks: Federal Reserve Chair, Jerome Powell, signaled possible easing of crypto rules for banks, noting the sector’s growing mainstream presence despite past issues
Panama City Greenlights Bitcoin, Ether Payments for Tax and City Services: The capital of Panama will accept crypto payments for certain services, Panama city Mayor Mayer Mizrachi said in an X post.
Trump Media Calls for SEC to Investigate ‘Suspicious’ Trading of DJT Stock: Truth Social parent company Trump Media & Technology Group alleged that UK-based Qube might be shorting DJT stock without disclosing its positions properly.
A web3 startup aims to change the game in the tariff wars: The tech startup thinks it could track tariffs automatically on goods coming into and out of the USA using its blockchain platform.
Gate.io x Oracle Red Bull Racing in F1: Co-Creating a New Web3 Brand Paradigm Through Speed and Transformation
Binance Founder CZ Predicts Unlimited Money Printing to Buy Bitcoin Amid China’s Expanding Money Supply and Crypto Liquidity Flow: Changpeng Zhao (CZ) has predicted that nations will resort to printing unlimited amounts of money to purchase Bitcoin
Grocery Giant SPAR Dips Toe Into Crypto Payments: SPAR, a global grocery retailer with a significant presence including over 13,900 stores across 48 countries in Europe, Asia, Africa, and Australia, is reportedly testing cryptocurrency payments in Switzerland.
On-Chain Experiment Or Rug Pull? Base Faces Backlash After Unofficial Memecoin Crashes 90%
Quantum Computing Group Offers 1 BTC to Whoever Breaks Bitcoin’s Cryptographic Key: Quantum computers can rapidly break the cryptographic algorithms that secure blockchain networks.
Notable Deals & Fundraising
LayerZero’s ZRO Jumps 10% as VC Firm Andreessen Horowitz Buys $55M Worth: The venture capital firm’s ZRO acquisition follows previous investments in the protocol.
Resolv Labs Raises $10M as Crypto Investor Appetite for Yield-Bearing Stablecoins Soars: Stablecoins are “perfect rails for yield distribution,” the protocol’s CEO and founder Ivan Kozlov said in an interview.
TAC Attracts $150M to Bring Ethereum-based Liquidity to Telegram’s TON Blockchain: TAC worked with the Turtle Club to build and provision liquidity vaults on Ethereum that can be used by DApps accessing the TON blockchain.
Meanwhile raises $40M from Framework Ventures, the largest equity investment from the firm to date.
Auradine Raises $153M Series C for Bitcoin Mining, AI Data Center Networking: The funding round takes Auradine’s total backing to $300 million.
Securitize acquires MG Stover’s Fund Administration business: Securitize announced it acquired a crypto-focused fund administration firm
Unchained Launches Multi-Million Dollar Bitcoin Legacy Project: Unchained launches the Bitcoin Legacy Project, a multi-million-dollar initiative supporting bitcoin development, education, and advocacy.
SignalFire raises $1B to invest in AI startups: Early-stage venture capital firm SignalFire closed on $1 billion in new capital to fund applied AI companies. The raise for its fifth and largest fund brings its total assets under management (AUM) to approximately $3 billion.
Hellocare.ai nabs $47M for AI-assisted virtual care: HealthQuest Capital led the round with backing from Bon Secours Mercy Health, UCHealth, OSF Ventures and LRVHealth.
Have a great week!
