Bitcoin Surges Toward $121K as Trump Threatens Legal Action Against Powell

Bitcoin rockets toward $121K—because nothing fuels crypto like political chaos.

Trump vs. Powell: The feud that accidentally became Bitcoin's best marketing campaign.

Meanwhile, traditional finance bros still think 'blockchain' is a new SoulCycle class.

Bitcoin Rises On Trump-Powell News

Despite the political drama, Bitcoin price inched closer to $121,000, signaling strong market momentum.

Renovation Costs Row Puts Fed Under Pressure

In a Truth Social post, Trump said he’s considering allowing a major lawsuit to proceed against Powell over the cost of Federal Reserve building renovations.

He claimed the project should have been a $50 million “fix-up,” not a $3 billion overhaul. Reports have disclosed that Powell was previously referred to the Department of Justice for alleged perjury tied to the same costs.

During a recent visit to the Fed to inspect the renovation, Trump once again pressed Powell to cut rates. The president accused the Fed chief of acting “too late” on key policy decisions, calling the damage “incalculable.”

Rate cuts are typically seen as bullish for risk assets, including Bitcoin and other cryptocurrencies, as they can weaken the US dollar and encourage more speculative investment.

President Donald Trump said he is weighing a lawsuit against Federal Reserve Chair Jerome Powell over the renovation of the central bank’s headquarters, a project whose cost overruns have drawn scrutiny. https://t.co/1WQIlBDlcb

— Bloomberg Law (@BLaw) August 12, 2025

The latest Consumer Price Index showed a 2.7% year-over-year rise in July, lower than the forecasted 2.8%. Monthly CPI eased to 0.2% from the previous 0.3%.

Based on reports, the data suggests Trump’s tariffs have not pushed inflation higher, undermining the Fed’s earlier caution on cutting rates. Trump said tariffs aren’t hurting consumers, claiming large amounts of cash are flowing into the US.

A rate cut in this environment could create a more favorable backdrop for crypto prices, as cheaper borrowing and weaker yields in traditional assets often drive more interest in alternative stores of value like bitcoin and Ethereum.

Stephen Miran, Trump’s nominee for the Fed Board, told CNBC that inflation is “well behaved” and running at a 1.9% annualized rate since Trump took office. He stressed that CPI data rarely gets revised and there’s no sign of tariff-driven inflation.

His comments align with Trump’s position and add to the market’s expectations that the Fed may shift toward easing sooner. crypto traders are watching closely, as a dovish Fed stance could ignite rallies across major tokens.

The combination of political heat, legal threats, and softer inflation data is putting Powell in a tight spot. If rate cuts arrive faster than expected, crypto markets could see a surge in momentum — and Bitcoin’s MOVE toward $121,000 suggests investors may already be positioning for it.

Featured image from Meta, chart from TradingView