In a broader market sell-off, BTC's price fell below $109,000, leading to $829 million in long liquidations amid the cryptocurrency market crash.
The cryptocurrency market overall is facing strong selling pressure, with long liquidations exceeding $829 million, as popular assets like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) plummeted 3-12% in the past 24 hours. Meanwhile, the dispute between Trump and the Federal Reserve escalated further, as the U.S. President fired Federal Reserve Governor Lisa D. Cook earlier today. Against the backdrop of numerous macro uncertainties, investors are selling off their assets.
Cryptocurrency market poised for collapse after Trump fires Federal Reserve Governor
Earlier today, amid strong selling by investors, Bitcoin's price plummeted over 3%, falling below $109,000. Meanwhile, Bitcoin's daily trading volume surged 20% to $90 billion, with long liquidations of $225 million within 24 hours. Since last week’s Jackson Hole meeting, BTC has given back all its gains as Federal Reserve Chairman Jerome Powell emphasized the possibility of an interest rate cut during the September FOMC meeting.
Recent analysis from Glassnode shows that BTC is at a critical juncture, and failure to hold this level could lead to prolonged weakness lasting several months, or even a deeper price correction. According to data from this blockchain analytics firm, BTC's trading price is slightly above $110,800, which represents the average cost basis for investors who accumulated funds during the historical highs from May to July. Failure to maintain this level could trigger significant corrections in the future.
As September approaches, investors are on edge as this is historically the weakest month for these assets. Market analysts believe that investors need to be prepared for more pain before a rebound in October to November.
Altcoin crash drags down the cryptocurrency market
Aside from BTC, altcoins also showed significant weakness, with top digital assets like Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) all retracing 7-12% in the past 24 hours. This clearly indicates that capital is flowing out of risk-sensitive assets, and the sluggish liquidity is exacerbating volatility.
Despite institutional inflows into Ethereum from Bitmine, SharpLink, and the Ethereum ETF, overall market sentiment is weakening as investors prepare for a pause in the upward trend. SOL, XRP, and DOGE have once again faced significant pullbacks at key resistance levels, with bears regaining dominance.
Donald Trump fires Federal Reserve Governor Lisa Cook
Due to uncertainty surrounding the interest rate cut during the Federal Reserve's September Federal Open Market Committee (FOMC) meeting, U.S. President Donald Trump fired Federal Reserve Governor Lisa D. Cook on Monday. This marks the first time in U.S. history that a sitting president has fired a voting member of the Federal Reserve.
However, Federal Reserve Governor Cook has decided to file a lawsuit against Trump's order. Cook stated that President Trump does not have the authority to fire her and that she will not resign. Cook's attorney indicated that they plan to 'take all necessary measures to block' Trump's 'illegal actions.'
As investors await adjustments to the Federal Reserve's monetary policy, it will be interesting to observe how Bitcoin and the cryptocurrency market react. According to data from the Chicago Mercantile Exchange's observation tool, the probability of a 25 basis point rate cut currently stands at 84.7%.
