Trump Appeals Cook Removal Before Fed Cut, Bitcoin Surges
Donald Trump has filed an appeal against a court injunction blocking his August 25 decision to remove Fed Governor Lisa Cook. The Justice Department argues the president’s “for cause” removal power is broad and not subject to judicial review. New May 2021 mortgage documents confirm Cook disclosed her Atlanta property as a second home, undermining fraud allegations. The appeal arrives days before its first Fed cut since December 2024, with CME futures assigning over 96% odds of a 25-basis-point Fed cut. Lower rates could bolster risk assets, including Bitcoin, which has surged near record highs amid political and monetary uncertainty. Traders should watch legal filings, Fed communications, and developments like BlackRock’s Rick Rieder emerging as a potential Fed chair for clues on market volatility ahead of the Fed cut.
Bullish
The appeal heightens political and legal uncertainty, a backdrop under which Bitcoin often rallies. Expectations of a Fed cut drive down yields and encourage investors into risk assets like Bitcoin. In the short term, traders may increase Bitcoin positions ahead of the anticipated rate cut. Over the long run, ongoing monetary and policy risks could support sustained demand for Bitcoin as a hedge. These combined factors suggest a bullish outlook for Bitcoin.