The cryptocurrency market is facing turbulence as Bitcoin, Ethereum, Solana, and Dogecoin drop sharply. The sell-off comes after President Donald Trump fired Federal Reserve Governor Lisa D. Cook, creating uncertainty in global financial markets.
Why Crypto Prices Are Falling
Bitcoin fell below $109,000 today, losing over 3% in a sudden sell-off. The move triggered $829 million in long liquidations, with major altcoins like ETH, SOL, and DOGE falling 7-12%. Market experts attribute this to the unprecedented firing of a sitting Fed governor, which has shaken investor confidence.
Key Highlights:
- BTC slipped under $109,000, losing recent gains.
- 24-hour BTC long liquidations reached $225 million.
- Daily trading volume jumped 20% to $90 billion.
- Altcoins like ETH, SOL, and DOGE dropped significantly.
Bitcoin at a Crucial Support Level
Glassnode reports that Bitcoin is hovering just above $110,800, the average cost basis for investors from the May–July rally. Failure to hold this level could trigger multi-month weakness, making September historically risky for cryptocurrencies.
Altcoins Follow Bitcoin’s Downtrend
Ethereum, Solana, Dogecoin, and other major altcoins are facing steep corrections. Despite institutional interest in Ethereum via ETFs and companies like Bitmine and SharpLink, overall market sentiment is shaky.
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Ethereum (ETH): Down 7-10%
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Solana (SOL): Down ~12%
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Dogecoin (DOGE): Down ~10%
This indicates capital is moving away from riskier assets, increasing volatility.
Trump Fires Fed Governor Lisa Cook
Donald Trump’s firing of Fed Governor Lisa Cook marks the first time a sitting voting member of the Federal Reserve has been removed by the White House. Cook has announced plans to challenge the decision legally, claiming the President does not have the authority to remove her.
Markets now watch closely for potential Fed policy changes, including the September FOMC meeting rate cut. CME data shows an 84.7% chance of a 25 basis point cut.
What Investors Should Do
Short-term volatility is likely. Investors should focus on strategy rather than panic selling.
Investor Tips:
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Track key support levels like $110,000 for BTC.
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Diversify holdings to reduce risk exposure.
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Monitor macroeconomic news affecting crypto markets.
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Avoid panic selling and focus on long-term strategy.
FAQs
1. Why did Bitcoin fall sharply today?
Bitcoin dropped due to uncertainty caused by Trump firing Fed Governor Lisa Cook, triggering $225 million in long liquidations.
2. Which altcoins were most affected?
Ethereum, Solana, and Dogecoin fell 7-12% in the last 24 hours.
3. Is September a weak month for crypto historically?
Yes, September often sees corrections before the year-end rally.
4. How does Trump’s action affect crypto?
The legal dispute and monetary policy uncertainty may increase market volatility.
5. Should investors sell during this crash?
It’s advised to hold positions, monitor support levels, and avoid panic selling.