Bitcoin price today: Fed slumps to 7-week low around $110K amid concerns of Fed independence

Investing.com — Bitcoin fell to a seven-week low on Tuesday as investors avoided risk after U.S. President Donald Trump's unprecedented ouster of Federal Reserve Governor Lisa Cook deepened concerns about the central bank's independence.

As of 8:59 a.m. in Turkey, the world's largest cryptocurrency is trading at $110,231.8, down 1.8%. This is the lowest level seen since July 9.

Bitcoin is currently down nearly 12% from its record high of over $124,000 in August. Much of the rally, formed by expectations that the Fed will move to cut interest rates soon, has been wiped out.

Trump Fires Fed Governor Lisa Cook

Trump announced Monday that he had fired Cook over allegations of mortgage fraud. Trump accused Cook of misrepresenting his home ownership status on his 2021 credit documents.

The claims, directed by the Federal Housing Finance Agency to the Department of Justice, are denied by Cook. According to the Washington Post, Cook said his dismissal was illegal and undermined the Fed's political independence.

The rare ouster of an incumbent Fed governor has shaken markets. This has raised fears of political interference in monetary policy. Investors are having a hard time assessing whether the Fed can offer policy guidance free from political pressure.

The move follows weeks of Trump's criticism of Fed President Jerome Powell. Trump was publicly pressuring Powell to cut interest rates more aggressively.

Bitcoin and other digital assets are particularly sensitive to changes in US interest rate expectations. Because low borrowing costs often increase demand for speculative assets.

Cryptocurrency price today: altcoins fall amid broader anti-risk mood

Most altcoins experienced sharp declines in a broad-based wave of selling on Tuesday following Trump's announcement.

Ethereum, the world's No. 2 cryptocurrency, fell 5.7% to $4,439.4. Ethereum hit a record high at $4,955 earlier this week.

The world's No.3 cryptocurrency, XRP, fell 1.7% to $2.93.

Solana fell 7%, Cardano fell 6.2% and Polygon traded 4.1% lower.

Among meme tokens, Dogecoin fell 6.6%, while $TRUMP fell 3.2%.

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