BTC ETH SOL DOGE prices slide after Trump ousts Federal Reserve leader

TLDR

Table of Contents

Over $829M in crypto long positions were liquidated in the past 24 hours.
Bitcoin price fell below $109K with $225M in BTC long liquidations.
Ethereum, Solana, and Dogecoin fell 7% to 12% amid wider market sell-off.
Trump fired Fed Governor Lisa Cook, sparking legal action and market fear.

A sharp drop in crypto prices has hit the market after President Donald Trump removed Federal Reserve Governor Lisa D. Cook from office. Bitcoin, Ethereum, Solana, and Dogecoin fell between 3% and 12% in the last 24 hours. Over $829 million in long positions were liquidated, causing panic among investors. The move adds more tension to an already uncertain macro environment ahead of the September FOMC meeting.

Crypto Market Sinks After Trump Fires Fed Governor Lisa Cook

The crypto market saw a strong wave of selling pressure following the sudden dismissal of Fed Governor Lisa D. Cook. Bitcoin fell below $109,000, giving up recent gains from the late-summer rally. Within 24 hours, over $225 million in BTC long positions were liquidated, according to market data.

Trading volume for Bitcoin surged 20% to $90 billion, indicating high activity as traders responded to the political event. Glassnode reports that Bitcoin is now trading near $110,800 — a key support level that reflects the average price during the May to July rally. Falling below this level could lead to further losses in the weeks ahead.

Source: Glassnode

Investors are reducing exposure to risk assets as confidence in market direction weakens. Analysts note that September has historically been the weakest month for crypto, which adds to investor caution. Many traders are preparing for more volatility if uncertainty over Federal Reserve actions continues.

Altcoins Lead Losses as Selling Pressure Builds Across Market

The market-wide sell-off extended beyond Bitcoin, hitting major altcoins harder. Ethereum dropped by more than 8%, Solana by nearly 12%, and Dogecoin also saw double-digit percentage losses. These assets were unable to hold above key technical levels, leading to an acceleration in price drops.

Despite receiving some institutional flows and renewed interest from firms like Bitmine and SharpLink, Ethereum could not avoid the downtrend. Even Ethereum ETFs saw net inflows, but market sentiment remains weak. Solana and Dogecoin also failed to maintain upward momentum and quickly turned lower.

Liquidity across the altcoin space has thinned out, which increases volatility. Many of these assets had already faced resistance in recent weeks. As bears gain more control, traders are exiting altcoin positions in anticipation of deeper price corrections.

XRP and other mid-cap tokens also recorded losses, following the same pattern of sell-offs triggered by a shift in market sentiment. Investors appear to be moving away from high-risk digital assets until there is more clarity on future Fed decisions and interest rate policy.

Trump’s Move Against Fed Governor Sparks Legal Battle and Uncertainty

President Donald Trump removed Federal Reserve Governor Lisa D. Cook from her post on Monday. The White House has not issued detailed comments, but the action marks the first time a sitting president has fired a voting Fed member. This decision raised legal and constitutional questions.

Governor Cook responded by rejecting the firing. Her legal team stated that President Trump “has no authority to fire her” and said she would not step down. “We plan to take whatever actions are needed to prevent this illegal action,” her lawyer said.

The situation is expected to develop as Cook initiates legal proceedings to challenge the dismissal. The conflict has raised concerns about the independence of the Federal Reserve and its ability to set policy without political pressure.

Market watchers are now looking ahead to the September FOMC meeting. The CME FedWatch Tool shows that there is currently an 84.7% chance of a 25 basis point interest rate cut. Until a clear outcome is seen, crypto markets may stay unstable.

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