US president Donald and the Federal Reserve’s feud is heating up. This feud began with Trump firing Fed’s Governor Lisa Cook earlier. However, Cook has refused to step down claiming that the president doesn’t have the mandate to fire her.
Amid this public spat, the crypto market is feeling the heat of the Trump vs Fed quarrel. Top cryptocurrencies have dropped significantly with Bitcoin dipping below the $110,000 support. Ethereum is also down to $4,300 while other top altcoins are down 3-10%.
Trump vs Fed Feud
Earlier today, Donald Trump fired Federal Reserve Governor Lisa D. Cook. As detailed in the White House letter, Trump removed Cook from her position on the basis of ’cause’ citing that he determined sufficient cause to fire her.
“You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately. The Federal Reserve Act provides that you may be removed, at my discretion, for cause…I have determined that there is sufficient cause to remove you from your position,” detailed Trump’s letter to Cook.
Nonetheless, Fed’s Lisa Cook has refused to step down from her position. As per reports, she argued that Trump doesn’t have the authority to fire her and that the basis of “cause” which she has been fired on, does not exist under the law.
This has heated the feud further with political analysts now questioning the independence of the Federal Reserve under Trump’s administration. Trump has also previously considered to fire Fed Chair Jerome Powell.
Crypto Market Crashes; BTC Falls to $109K, ETH to $4.3K
Coupled with existing mixed macro factors, the public feud between Trump and the Federal Reserve has pushed the crypto market on a free fall. Bitcoin, for instance, has dropped below $110,000 while Ethereum is down to $4,300 after hitting a new all-time high above $4,900, just a few days ago.
JUST IN: Bitcoin falls under $110,000 pic.twitter.com/gLLDO1rxSv
— Watcher.Guru (@WatcherGuru) August 25, 2025
Other top altcoins have also felt the heat. Solana, BNB, XRP, among others are down between 3% – 10%, as per data by CoinMarketCap. This dip transcends from panic selling as Trump and the Fed quarrel grows.
While the firing of Fed’s Governor Lisa Cook could precede a potential rate cut in September, since Trump has been frustrated by the agency’s previous decisions, the questions around its independence has caused uncertainty. In turn, this has pushed retail investors to dump their digital asset holdings.
“Markets aren’t panicking, but they are recalibrating, earlier rate cuts look more likely after Cook’s removal. But this isn’t just about rate cuts, it’s about the Fed’s independence and the growing institutional risks in the U.S. Gold…investors are hedging not against one dismissal, but against the long shadow it casts over the Fed’s independence. The yield curve will steepen if markets believe looser policy comes at the cost of inflation control and credibility,” said Charu Chanana, the Chief Investment Strategist at Saxo, as per a Reuters report.
With macro uncertainty now present, the crypto market could continue to drop or consolidate despite high optimism for a September rate cut. Market participants will keep an eye on any developments in the Trump vs Fed feud as it could determine how cryptocurrencies perform in the short-term.
[…] to Liquidation data by Coinglass, the crypto market has also lost $411.21 million over the last 24 hours. During this period, a total of 125,943 […]
This feud is clearly shaking investor confidence, and it’s not surprising to see crypto reacting so sharply. Alongside watching these global financial shifts, it’s also important to keep an eye on state-level records that often tie into broader economic and legal discussions. For example, resources like California arrest records can provide useful insights into regional legal data that sometimes overlaps with financial trends. Keeping both macroeconomic and local factors in view helps form a clearer perspective.
The ongoing clash between Trump and the Fed is certainly adding more pressure on the already shaky crypto market. Investors should keep an eye on both regulatory moves and market sentiment as they unfold. For those tracking future projections, you might also find insights on FintechZoom price prediction useful to understand how such political events can impact market trends in the long run.