Large scale selling and uncertain macroeconomics condition drove Bitcoin’s price below $109,000 on Tuesday.
Bitcoin (BTC) then recovered above $110,000 by early morning trading in Europe, after the cryptocurrency touched its lowest price since early July of this year.
Bitcoin’s latest pullback follows a short-lived rally on Friday, when US Federal Reserve Chair Jerome Powell hinted at a possible rate cut during a speech, fueling speculation and optimism ahead of the Fed’s September meeting.
Altcoin slide
Major altcoins showed tentative signs of recovery after suffering major losses at the start of the week. XRP shed 5.5% and Solana plunged 9% on Monday.
Markets remain somewhat rattled by US politics and institutional conflict. On Monday, President Donald Trump attempted to fire Federal Reserve governor Lisa Cook, citing alleged false statements on mortgage documents and “deceitful and potentially criminal conduct.” Cook challenged Trump's move to dismiss her and has refused to resign.
Dollar in flux
The move to dismiss a governor, which was announced in a letter posted on Trump’s personal social media platform Truth Social, deepened concerns about the central bank’s independence, with critics calling it an illegal power grab. The DXY dollar index dropped 0.3% straight after Trump's post, a reversal that followed the greenback’s strongest daily advance of the month on Monday.
Investors now await revised US GDP figures on Thursday and a report about consumer spending on Friday – data that could shed light on US inflation, the economy and that may further influence the Fed’s September rate‑cut calculus.
Equities unfazed
US stock futures remained largely unfazed by turmoil in the crypto market as at 0645 UTC, with major indices posting small pre-market losses. Asian equities fared worse: the Hang Seng Index of Hong Kong was down 0.6%, while Japan’s Nikkei dropped almost 1% on Tuesday.
