U.S. stock futures slip lower; Cook’s firing increases Fed independence worries
Investing.com-- Bitcoin fell to a seven-week low on Tuesday as traders shunned risk after U.S. President Donald Trump’s unprecedented dismissal of Federal Reserve Governor Lisa Cook deepened worries about the central bank’s independence.
As of 01:59 ET (05:59 GMT), the world’s largest cryptocurrency traded 1.8% lower at $110,231.8, its lowest since July 9.
It has now retreated nearly 12% from an August record peak above $124,000, erasing much of the rally built on bets the Fed would soon pivot to rate cuts.
Trump fires Fed Governor Lisa Cook
Trump on Monday announced he had fired Cook over allegations of mortgage fraud, accusing her of misrepresenting home-ownership status in 2021 loan documents.
The allegations, referred to the Justice Department by the Federal Housing Finance Agency, are disputed by Cook, who said her dismissal was unlawful and undermined the Fed’s political independence, according to a Washington Post report.
The rare removal of a sitting Fed governor jolted markets, raising fears of political interference in monetary policy. Investors struggled to assess whether the Fed can deliver policy guidance free of political pressure.
The move follows weeks of Trump criticism of Fed Chair Jerome Powell, whom he has publicly pressured to cut rates more aggressively.
Bitcoin and other digital assets are particularly sensitive to shifts in U.S. interest-rate expectations because lower borrowing costs tend to boost demand for speculative assets.
Crypto price today: altcoins tumble amid broader risk-off mood
Most altcoins fell sharply on Tuesday in a broad-based sell-off following Trump’s announcement.
World no. 2 crypto Ethereum dropped 5.7% to $4,439.4, after hitting a record high of $4,955 earlier this week..
World no. 3 crypto XRP fell 1.7% to $2.93.
Solana slumped 7%, while Cardano slipped 6.2%, and Polygon traded 4.1% lower.
Among meme tokens, Dogecoin dropped 6.6%, while $TRUMP retreated 3.2%.