- Main event, leadership changes, market impact, financial shifts, or expert insights.
- Market crash involves BTC, ETH, SOL dropping 3-12%.
- Leadership changes trigger over $829 million liquidated.
President Trump’s dismissal of Federal Reserve Governor Lisa Cook has sparked a cryptocurrency market crash, affecting Bitcoin, Ethereum, Solana, and Dogecoin, with losses between 3 to 12 percent.
The incident heightens concerns over Fed independence and monetary policy stability, contributing to over $829 million in liquidation and fueling market volatility.
Trump Fires Fed Governor
The recent dismissal of Fed Governor Lisa D. Cook by President Trump led to widespread market turbulence, notably affecting cryptocurrencies. Bitcoin, Ethereum, Solana, and Dogecoin all saw a sharp decline between 3% and 12%.
Donald Trump initiated this turmoil with his executive decision. The firing of Cook was marked as an unusual move by a sitting president. Her absence has added to market uncertainty, leading to significant fluctuations in cryptocurrency values. In a statement about his decision, Donald Trump said, “This action underscores my commitment to an accountable Federal Reserve that will prioritize the American public’s economic wellbeing.” – Business Insider
Market Impact
The aftermath saw over $829 million in long liquidations across various crypto platforms. Investors reacted as uncertainty loomed, with no immediate response from prominent crypto figures or the Federal Reserve leadership. These events have sparked concerns about Fed independence. The interplay between political decisions and market reactions is under scrutiny, affecting traders and institutional contributors alike. Financial markets show increased volatility.
DeFi and Historical Context
Impacts have extended to underlying DeFi protocols and smaller tokens. The swift market changes have not yet elicited direct software updates or project proposals from major developers. Stakeholders express anxiety over continued instability. Historical comparisons indicate similar executive interventions heightening investors’ risk perceptions. Prior similar moments have led to temporary — yet profound — market disruptions, particularly in highly speculative assets.
