Bitcoin edged higher on Wednesday after dropping in the previous session to a seven-week low, as risk appetite remained weak following US President Donald Trump’s attempt to oust Federal Reserve board member Lisa Cook, raising fresh concerns over central bank independence.
As of 02:32 a.m. Eastern time (06:32 GMT), the world’s largest cryptocurrency was up 1.2% at 111,272.4 dollars.
Bitcoin had fallen below 109,000 dollars to its lowest level in seven weeks after a large “whale” transaction, with reports showing about 24,000 tokens were liquidated.
The cryptocurrency has now lost more than 10% from its record high in August above 124,000 dollars, erasing much of the gains built on expectations of a Fed pivot toward rate cuts.
Concerns over Fed independence weaken risk appetite
Trump announced Tuesday he had immediately dismissed Cook over allegations of “mortgage fraud,” accusing her of providing misleading information about her housing status in 2021 loan documents.
The allegations had been referred to the Justice Department by the Federal Housing Finance Agency, but Cook denied them, calling her dismissal “illegal.”
Her attorney, Abbe Lowell, said he would file a lawsuit against the administration, arguing the dismissal lacked legal basis and violated the Federal Reserve Act, which stipulates board members may only be removed “for cause.”
Markets are now reassessing the Fed’s rate path, with short-term cut expectations rising, though uncertainty remains high over institutional independence and legal challenges.
Trump Media and Crypto.com launch crypto treasury firm
Trump Media & Technology Group (listed on Nasdaq under ticker DJT) and exchange platform Crypto.com said Tuesday they will launch a crypto treasury company through a SPAC merger, designed to accumulate Cronos (CRO) tokens, according to official filings and company announcements.
The new entity, to be named Trump Media Group CRO Strategy, will be structured as a merger with Yorkville Acquisition Corp and listed on Nasdaq.
Initial financing plans include about 1 billion dollars in CRO tokens, 200 million dollars in cash, 220 million dollars in warrants, and a 5-billion-dollar credit line from a Yorkville affiliate.
As part of the deal, Trump Media intends to purchase roughly 105 million dollars worth of CRO tokens, while Crypto.com will invest in Trump Media shares.
Following the announcement, CRO token prices jumped significantly, while Trump Media shares also rose.
