Bitcoin slid to a seven-week low on Tuesday as investors pulled back from risk assets following U.S. President Donald Trump’s unprecedented dismissal of Federal Reserve Governor Lisa Cook, a move that intensified concerns over the Fed’s political independence.
As of 01:59 ET (05:59 GMT), the world’s largest cryptocurrency was trading 1.8% lower at $110,231.8, its weakest level since July 9. Bitcoin has now fallen nearly 12% from its August peak above $124,000, erasing much of the rally fueled by expectations of upcoming Fed rate cuts.
Trump fires Fed Governor Lisa Cook
Trump announced Monday that he had fired Cook, alleging mortgage fraud and misrepresentation of home-ownership details in 2021 loan documents. The allegations, referred to the Justice Department by the Federal Housing Finance Agency, have been disputed by Cook, who called her removal unlawful and warned it undermined the Fed’s independence, according to the Washington Post.
The rare dismissal of a sitting Fed governor rattled financial markets, raising fears of political interference in monetary policy. The move comes after weeks of Trump publicly criticizing Fed Chair Jerome Powell for not cutting rates more aggressively.
Bitcoin and other cryptocurrencies remain highly sensitive to shifts in U.S. interest rate expectations, as lower borrowing costs generally increase demand for speculative digital assets.
Crypto market today: Altcoins join sell-off
Altcoins also tumbled in Tuesday’s broad-based crypto decline. Ethereum (ETH) fell 5.7% to $4,439.4 after briefly touching a record high of $4,955 earlier this week. XRP dropped 1.7% to $2.93.
Among other major tokens, Solana slumped 7%, Cardano slid 6.2%, and Polygon shed 4.1%. Meme coins were also hit, with Dogecoin down 6.6% and $TRUMP retreating 3.2%.
