The conflict between U.S. President Donald Trump and the Federal Reserve is intensifying, particularly after Trump dismissed Fed Governor Lisa Cook, who has refused to resign, arguing that he lacks the authority to fire her. This public dispute is affecting the cryptocurrency market, with Bitcoin falling below $110,000 and Ethereum dropping to $4,300, alongside other altcoins experiencing declines of 3-10%. Trump's letter to Cook cited 'sufficient cause' for her removal, raising concerns about the Fed's independence under his administration. Analysts speculate that this turmoil could lead to a potential rate cut in September, as Trump has expressed frustration with the Fed's past decisions. The uncertainty surrounding the Fed's autonomy has prompted retail investors to sell off their digital assets. Charu Chanana, Chief Investment Strategist at Saxo, noted that while markets are adjusting rather than panicking, the implications of Cook's dismissal extend beyond rate cuts, affecting perceptions of the Fed's credibility and inflation control. The crypto market may continue to fluctuate as developments unfold. Read more AI-generated news on: https://app.chaingpt.org/news

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