The broader crypto market has been facing strong selling pressure with more than $829 million in long liquidations, as top assets like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE), crashed between 3-12% in the last 24 hours. This comes as the Trump vs Fed feud escalates further as the US President fired Fed Governor Lisa D. Cook earlier today. Amid all the macro uncertainties, investors are now dumping their holdings.
Earlier today, Bitcoin price tanked by more than 3%, slipping under $109,000 level in a strong investor sell-off. This comes with a daily trading volume jumping 20% to $90 billion, with 24-hour BTC long liquidations at $225 million. BTC has given up all its gains following last week’s Jackson Hole meeting, wherein Fed Chair Jerome Powell touted the possibility of an interest rate cut during the September FOMC meeting.
The recent analysis from Glassnode shows that BTC is at a crucial junction, and failing to hold above it could lead to multi-month weakness and even deeper price corrections. According to the blockchain analytics firm, BTC is trading just above $110,800, which represents the average cost basis for investors who accumulated during the May–July rally to new all-time highs. Failure to hold this could trigger major corrections ahead.
Investors are on edge as we enter September, the weakest month for the assets, historically. Market analysts believe that before the October-November rally resumes, investors need to brace for more pain.
Apart from BTC, altcoins are showing major weakness, with top digital assets like Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE), all correcting 7-12% in the last 24 hours. This is a clear sign of capital rotating out of risk-ON assets, and the thin liquidity amplifies the volatility.
Despite Ethereum attracting institutional inflows from Bitmine, SharpLink and Ethereum ETFs, the overall sentiment wanes as investors prepare for a pause in the uptrend. SOL, XRP, DOGE have once again faced major pushback from key resistances as bears take charge again.
With uncertainty around the Fed rate cut during the September FOMC meeting, US President Donald Trump fired Fed governor Lisa D. Cook on Monday. This is the first time in the history of the US, wherein the White House has moved to fire a voting Fed member.
However, Fed Governor Cook has decided to initiate legal action against the Trump order. Fed Governor Cook says President Trump has no authority to fire her and that she will not resign. Fed Governor Cook’s lawyer said they plan to take “whatever actions are needed to prevent” Trump’s “illegal action.”
It will be interesting to see how Bitcoin and crypto markets react as investors await for a Fed pivot in monetary policy. As per the CME Watch Tool data, the current chances for a 25 bps rate cut stand at 84.7%.
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