Trump’s Fed Shake-Up: Bitcoin’s Hilarious Reaction You Won’t Believe! 😂

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Ah, the grand theater of politics! Late Monday, as the clock struck an hour of chaos, President Donald Trump, in a move that could only be described as a scene from a surrealist play, declared the immediate removal of Federal Reserve Governor Lisa D. Cook. “For cause!” he proclaimed, citing alleged fibs on 2021 mortgage applications. Cook, however, was not one to be easily dismissed. With the flair of a seasoned actress, she rejected the decree, declaring she would not resign and had retained counsel. A legal showdown loomed, a veritable duel of titans over the sanctity of presidential power and the independence of the Fed. 🎭

Cook, a Biden appointee, had been reconfirmed in 2023 for a term stretching into the distant future-January 31, 2038, to be precise. As a member of the Board of Governors, she wielded a permanent vote on the FOMC, a position akin to holding a golden ticket in a world of economic chocolate. But as the news rippled through Asia and Europe, Bitcoin, that capricious creature, took a tumble alongside a wobbly dollar and a US rates curve that seemed to be doing the cha-cha. At the time of writing, BTC was trading around $110,137, down a cheeky 2.4% after flirting with an intraday low of $108,666. Oh, the irony! 😱

What Lies Ahead for Bitcoin?

The stakes, dear reader, are nothing short of monumental. Reuters, in its usual dramatic fashion, reported that Trump’s letter accused Cook of “deceitful and potentially criminal conduct in a financial matter.” Legal scholars, those ever-enthusiastic debaters, noted that while 12 U.S.C. § 242 allows for removal “for cause,” it doesn’t bother to define what that cause might be. Historically, such standards have been reserved for misconduct in office, not pre-appointment shenanigans. No president has ever dared to remove a sitting Fed governor, and a court battle-perhaps even a Supreme Court showdown-seems inevitable. Cook’s attorney, Abbe Lowell, called the action unlawful, while Cook herself vowed to continue her duties, perhaps with a dramatic flourish. 🎩

Market participants, ever the opportunists, quickly connected the dots to a “hard assets” trade. Macro commentator Mel Mattison, in a moment of clarity, mused on X about a “Coup d’Fed or a Fed Makeover,” adding, “Tonight definitely takes it up a notch.” His initial take? After the initial shock wears off, this could be bullish for equities and massively bullish for gold and Bitcoin. Who knew economic turmoil could be so entertaining? 😂

In his whimsical view, “short-term, it will introduce a little volatility and maybe even a percent or two off the indices this week,” but in the months to come, “the board of governors may be stacked with Trump appointees who will deliver MMT-like monetary policy with a conservative twist.” Ah, the sweet taste of irony! 🍭

He further speculated that “other central banks, like the ECB, will be forced to lower rates as well… a race to the bottom in currencies combined with massive fiscal spending will ultimately lead to higher equity prices and gold over $5K by the end of ’26.” And as for Bitcoin? New all-time highs by the end of the week wouldn’t surprise him, especially after blockbuster NVDA earnings on Wednesday and an inline PCE on Friday. The plot thickens! 📈

Others framed the moment with even more dramatic flair. “And just like that, the President has fired a voting Fed member for the first time in history. The White House has never been this adamant about exerting influence over the US’ central bank. Fiscal dominance accelerates. Weimar beckons,” wrote Joe Consorti, Head of Growth at Bitcoin-focused firm Theya. He added, “Accelerate Operation Weimar. Long hard assets. Relax and enjoy the ride.” A rollercoaster of economic absurdity! 🎢

MacroEdge’s Partner and Chief Economist Don Johnson underscored the policy channel: “We’re running an almost $3 trillion deficit – what do you think happens with a puppet Fed that cuts rates to 1%?” A question for the ages! 🤔

Beyond Bitcoin, the cross-asset price action reflected the shockwaves. In early trading, the dollar index eased, and the Treasury curve bear-steepened, as fears of eroding Fed independence took hold. Investors reassessed the path for rate cuts; risk assets and gold danced a volatile tango. 💃

The attempted removal also intensified the narrative that Trump could soon gain additional seats to reshape the Board; if the action ultimately stands, it would give the White House another nomination to a seven-member body where governors (unlike regional bank presidents) always vote on monetary policy. A veritable chess game of economic proportions! ♟️

What truly matters for Bitcoin from 🎬

At press time, BTC traded at $110,273. And so, the saga unfolds…

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2025-08-26 10:25