Crypto Market Update: Bitcoin Rebounds Amid Fed Turmoil, Altcoins Gain
Bitcoin edged higher Wednesday to $111,272 after hitting a seven-week low below $109,000, pressured by a major whale trade that liquidated 24,000 tokens. The cryptocurrency has now dropped more than 10% from its August peak above $124,000, as risk sentiment remains muted amid concerns over Federal Reserve independence.
Fed turmoil shakes markets
U.S. President Donald Trump’s attempt to fire Fed Governor Lisa Cook escalated worries over central bank independence. Cook plans to challenge the dismissal in court, citing violations of the Federal Reserve Act. The episode is prompting investors to reassess interest rate expectations, including the likelihood of near-term rate cuts.
Altcoins rally
Ethereum rose 4.1% to $4,602, XRP gained 3.5% to $3.01, and Solana jumped 8.5%. Cardano and Polygon also saw gains, while Dogecoin climbed 5.4% and $TRUMP rose 2.4%, reflecting broader market recovery.
Trump Media partners with Crypto.com
Trump Media & Technology Group and Crypto.com announced plans to launch a SPAC-backed crypto treasury firm, Trump Media Group CRO Strategy, focused on Cronos (CRO) tokens. Initial funding includes $1 billion in CRO, $200 million in cash, and $5 billion in equity lines. CRO surged, and Trump Media shares jumped following the announcement.
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