Bitcoin fell below $109,000, and Trump's dismissal of Fed officials triggered a market dumping.

The crypto market experienced a severe dumping after President Trump dismissed Federal Reserve Board of Governors member Lisa D. Cook, with Bitcoin falling below the $109,000 mark. Over $829 million in long positions were liquidated in the crypto market within 24 hours. Mainstream tokens such as Ethereum, Solana, and DOGE all dropped by 7% to 12%, and market sentiment significantly worsened. Analysts warn that September may see a deeper adjustment, while investors are closely following the Fed's future monetary policy direction.

Crypto market crashes, investor confidence shaken This morning, the price of Bitcoin fell more than 3%, dropping below $109,000, with significant selling pressure in the market. In the past 24 hours, BTC trading volume surged by 20%, reaching $90 billion, while the liquidation amount for BTC long positions hit $225 million. This round of correction has almost wiped out the gains from the market's expectations of a rate cut by the Fed in September following the Jackson Hole meeting. On-chain analysis platform Glassnode pointed out that BTC is currently above the critical technical support level of $110,800, which is the average cost price for investors during the significant increase from May to July. If it falls below this support, it could trigger a deep correction in the coming months.

Market expectations for heightened risks in September, adjustments may be a prelude to a long-term rise Historical data shows that September is the weakest month for the crypto market. Market analysts generally believe that if the adjustments in September continue, it could provide a healthier foundation for rebounds in October and November. The price trend of Bitcoin and changes in trading volume have become the core indicators closely monitored by investors, and the sentiment indicator for the crypto market has shifted to the panic range.

Ethereum, Solana, DOGE and other mainstream coins all fell sharply Not only is Bitcoin under pressure, but other major cryptocurrencies have also experienced significant declines. Ethereum (ETH), Solana (SOL), and DOGE have all fallen between 7% and 12% in the past 24 hours. Although ETH continues to attract institutional inflows, including funds from Bitmine, SharpLink, and Ethereum ETF-related investments, overall market confidence remains weak. SOL, XRP, and DOGE are all under pressure from key resistance levels, and bearish sentiment is gradually dominating the market. In addition, market liquidity continues to tighten, amplifying price volatility and significantly increasing risk for short-term investors.

Trump's dismissal of the Federal Reserve Board of Governors sparks market turbulence On Monday, U.S. President Trump announced the dismissal of Federal Reserve Board Governor Lisa D. Cook, marking the first time in American history that a president has directly removed a voting member of the Fed. This move has heightened concerns in the market regarding the Fed's monetary policy in September. Governor Cook immediately announced that she would take legal action against Trump's order and refused to resign. Her lawyer stated that all necessary measures would be taken to stop the "illegal actions." This incident has intensified the uncertainty surrounding the Fed's policy outlook, further exacerbating volatility in the crypto market.

Investors follow the Fed's policy shift, with the market expecting a 84.7% probability of a rate cut in September According to the CME FedWatch tool, the probability of the Federal Reserve cutting interest rates by 25 basis points in September is as high as 84.7%. Market investors are waiting for the Federal Reserve's policy statement in the coming weeks, and if the Fed does not cut rates as expected, it may lead to further pressure on risk assets. Currently, the on-chain activity of Bitcoin and Ethereum and the derivatives market position data have become important reference indicators for assessing market trends.

Conclusion Trump's historic dismissal of a member of the Federal Reserve Board of Governors has become the catalyst for significant volatility in the crypto market, with Bitcoin falling below key support levels and increased selling pressure across crypto assets. Investors need to closely follow the future direction of the Fed's monetary policy and changes in market sentiment, as the current pullback may provide an opportunity for the year-end market.