Trump Fires Fed Governor, Triggers Bitcoin Liquidation Zones
Former President Donald Trump announced the removal of Federal Reserve Governor Lisa Cook, who has vowed not to resign and questioned his authority. The move has intensified concerns over Fed independence and elevated policy uncertainty ahead of the September FOMC meeting. The U.S. dollar weakened while safe-haven demand rose. On-chain and exchange heatmaps show Bitcoin liquidation zones shifting lower, with sell walls and potential liquidation clusters at $114K–$117K acting as resistance. Support zones around $108K–$109K suggest increased volatility in the near term. Analysts view this as an institutional shock that amplifies policy noise and clouds rate-cut probabilities. Traders should monitor legal updates, Fed communications, CME implied rates, USD trends and Treasury yields to gauge cross-asset risk and position accordingly.
Bullish
The unexpected dismissal of a Fed governor represents a rare institutional shock that undermines central bank autonomy and fuels policy uncertainty. Historically, episodes of U.S. policy turmoil have weakened the dollar and driven investors toward alternative assets. With the dollar under pressure, Bitcoin stands to benefit as a perceived safe-haven, supporting a bullish outlook despite near-term volatility around the $114K–$117K liquidation zones. Traders should note that heightened policy noise may delay or reshape Fed rate-cut expectations, prolonging USD weakness. In the short term, we can expect sharp price swings as liquidation barriers are tested. Over the medium term, sustaining demand amid a fragile dollar and persistent Fed uncertainty points to upside potential for BTC.