Bitcoin, Crypto Market Rise as Court Halts Trump’s Bid to Oust Fed Gov Lisa Cook

Bitcoin and crypto market rebound slightly as a US district court has temporarily halted President Donald Trump from firing Federal Reserve Governor Lisa Cook on late Tuesday, continuing the legal battle further. This comes as President Trump seeks to challenge the long-held independence of the Federal Reserve for delaying interest rate cuts.

Bitcoin and Crypto Market Saw Rebound Amid Judge Order

Bitcoin and the top crypto assets, including Ethereum, XRP, BNB, Solana, Dogecoin, and Cardano, saw a modest bounce on September 10. Whereas, Trump-linked crypto assets decline. World Liberty Financial (WLFI) dropped nearly 1% after the federal judge blocked Trump from removing Fed Governor Lisa Cook.

Meanwhile, AI coins continued their upside move with a slight profit booking. Top AI crypto tokens such as Worldcoin (WLD), NEAR, RENDER, and VIRTUAL skyrocketed more than 8-50% in the last 24 hours as the US SEC met with several AI companies to discuss regulation amid the AI-crypto convergence.

Bitcoin price holds near $111,500 as traders await the key inflation data before the Fed rate cut next week. The Producer Price Index (PPI) inflation data is due later today, followed by the Consumer Price Index (CPI) on Thursday.

The U.S. 10-year Treasury yield rose significantly after the Non-farm payrolls data was revised down 911K for 12 months, indicating overstated jobs printed by the Bureau of Labor Statistics (BLS) for the last few months. Last week, the Non-farm payrolls data came in significantly lower than expected at 22K.

Concerns over fewer job openings and a weak labor market amid sticky inflation put three Fed rate cuts on the table. The CME FedWatch shows more than 93% probability of a 25 bps Fed rate cut, but some expect a 50 bps rate cut.

Judge Stops Trump From Removing Fed Gov Lisa Cook

According to a filing in the U.S. District Court for the District of Columbia, District Judge Jia Cobb granted a temporary restraining order by Fed Governor Lisa Cook to pause Trump’s decision to remove her “for cause” from the Board of Governors.

Also, the court ordered defendants Fed Chair Jerome Powell and the Board of Governors of the Federal Reserve System not to consider Lisa Cook’s removal on the grounds stated in the President’s letter in August. The Fed needs to provide access to her office and any benefits under her position until the resolution of this litigation.

The move has temporarily faded concerns over the Federal Reserve losing its independent status, as Trump pushes the central bank to cut rates immediately and aggressively.