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Bitcoin edged higher on Wednesday after hitting a seven-week low in the previous session, as market sentiment remained cautious following U.S. President Donald Trump’s attempted firing of Federal Reserve Governor Lisa Cook, raising concerns over the central bank’s independence.
As of 02:32 ET (06:32 GMT), Bitcoin traded 1.2% higher at $111,272, rebounding from a seven-week low below $109,000 caused by a large whale liquidation that saw 24,000 BTC positions closed. The cryptocurrency has now retraced more than 10% from its August record peak above $124,000, erasing much of the rally driven by bets on near-term Fed rate cuts.
Fed independence concerns weigh on risk appetite
Trump announced Cook’s dismissal over allegations of mortgage fraud, claiming misrepresentation in 2021 loan documents. Cook disputes the claims and has vowed to challenge her removal in court, citing violations of the Federal Reserve Act, which allows governors to be removed only “for cause.”
The development has investors reassessing U.S. interest-rate expectations, with short-term rate cuts becoming more probable, even as long-term uncertainty over Fed independence and potential legal battles persists.
Trump Media, Crypto.com launch SPAC-backed crypto treasury firm
In a separate development, Trump Media & Technology Group and Crypto.com announced the creation of a SPAC-backed crypto treasury firm targeting Cronos (CRO) tokens. The venture, Trump Media Group CRO Strategy, will merge with Yorkville Acquisition Corp and list on Nasdaq.
Initial funding includes $1 billion in CRO tokens, $200 million in cash, $220 million in warrants, and a $5 billion equity line of credit from a Yorkville affiliate. Trump Media plans to acquire $105 million in CRO tokens, while Crypto.com will invest in Trump Media equity. The announcement drove CRO token prices higher, alongside gains in Trump Media shares.
Altcoins rebound amid cautious risk sentiment
Altcoins largely recovered on Wednesday following prior session losses.
- Ethereum rose 4.1% to $4,602.91, after reaching an all-time high of $4,955 earlier this week.
- XRP gained 3.5% to $3.01.
- Solana jumped 8.5%, Cardano added 3.3%, and Polygon rose 4.1%.
- Among meme tokens, Dogecoin climbed 5.4%, while $TRUMP increased 2.4%.
The cryptocurrency market remains sensitive to U.S. monetary policy developments and high-profile institutional moves, with risk appetite fluctuating alongside broader macro and political events.
