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Bitcoin drops to seven-week nadir
AI Summary
- Bitcoin fell to a seven-week low of 110,231.8 dollars, down 1.8% from its record high in August, due to concerns over the Federal Reserve's independence after President Trump dismissed Fed governor Lisa Cook
- Trump's dismissal of Cook over allegations of mortgage fraud raised fears of political interference in monetary policy, leading to market shock and questioning of the Fed's ability to provide guidance free from political pressure
- Bitcoin's decline is attributed to broken technical levels, massive selling by whales, and excessive leveraged positioning, with forecasts and technical analyses suggesting further potential for decline.
Bitcoin fell to a seven-week low on Tuesday, as traders shunned risk assets after US President Donald Trump dismissed Federal Reserve governor Lisa Cook, in an unprecedented move that raised concerns over the central bank’s independence.
As of 01:59 a.m. Eastern time (05:59 GMT), the world’s largest cryptocurrency was down 1.8% at 110,231.8 dollars, its lowest level since July 9. It has now fallen about 12% from its record high in August above 124,000 dollars, giving up much of the gains built on expectations of imminent US rate cuts.
Trump dismisses Fed governor Lisa Cook
Trump announced Monday the dismissal of Cook over allegations of “mortgage fraud,” accusing her of providing misleading information on home ownership in a 2021 loan document.
The allegations had been referred to the Justice Department by the Federal Housing Finance Agency, but Cook denied the charges, calling the dismissal unlawful and a blow to Fed independence, according to the Washington Post.
The rare move to remove a sitting Fed board member shocked markets, heightening fears of direct political interference in monetary policy and leaving investors questioning the Fed’s ability to provide guidance free from political pressure.
It followed weeks of Trump’s criticism of Fed Chair Jerome Powell, whom he has publicly pressed to cut interest rates more aggressively.
Why is Bitcoin falling today?
Bitcoin’s decline stems from a mix of broken technical levels, massive selling by “whales,” and excessive leveraged positioning.
The coin already tested levels below 109,000 dollars before rebounding slightly above support, but the latest forecasts and technical analyses suggest Bitcoin still has room to fall further.
Current market data
As of Tuesday, August 26, 2025, Bitcoin was trading at 110,185 dollars, down 2.83% from yesterday and 11% below its record high of 124,533 dollars reached on August 14.
Losses deepened after a large investor (“whale”) sold 24,000 Bitcoin worth more than 2.7 billion dollars, temporarily pushing the coin below 109,000 dollars on Monday.
The selling pressure erased all of Bitcoin’s gains following Fed Chair Jerome Powell’s dovish remarks at the Jackson Hole conference, which had pushed the cryptocurrency above 117,000 dollars on Friday.
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