Bitcoin Slips Under $110K as Fed Uncertainty and Trump’s Shock Firing Shake Markets

Bitcoin fell below the $110,000 threshold on Monday as traders turned cautious ahead of key U.S. economic updates and a surprise shake-up at the Federal Reserve. The world’s largest cryptocurrency dropped 2.8% to $109,882, deepening its weekend retreat, with more than $940 million in long positions liquidated over the past 24 hours.

The pullback pushed Bitcoin beneath $110,800—the average three-month cost basis for recent investors. Analysts warn that failure to defend this level has historically preceded longer bouts of market weakness and deeper corrections.

Adding to the turbulence, U.S. President Donald Trump abruptly dismissed Federal Reserve Governor Lisa Cook. In a resignation letter shared on TruthSocial, Cook denied accusations of falsifying documents related to her residence, calling the claims “deceitful and potentially criminal.” The news rattled financial markets, with the dollar index briefly sliding 1% before stabilizing near 98.32, while futures tied to major U.S. equity benchmarks slipped by a quarter of a percent.

Investors now await Thursday’s revised second-quarter GDP numbers, expected to show growth edging up to 3.1%, alongside fresh core PCE inflation data. Economists forecast a slight re-acceleration in annual inflation, from 2.8% to 2.9%. A combination of weaker growth and hotter inflation could upend expectations for a September rate cut and cast doubt over further easing this year—leaving Bitcoin vulnerable to more downside.