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Bitcoin traded higher on Thursday after falling to its lowest level in nearly two months earlier this week. The world’s largest cryptocurrency was up about 1% at $112,940 by mid-morning in New York.
Bitcoin had slipped below $109,000 earlier this week, its weakest level in seven weeks, before staging a modest rebound. Even with the bounce, prices remain more than 10% below the record high above $124,000 reached in August.
The market is being pulled in two directions. On one hand, traders are betting heavily that the Federal Reserve will cut interest rates next month. On the other, uncertainty is rising after President Donald Trump announced he was firing Fed Governor Lisa Cook, a move now being challenged in court.
Trump accused Cook of mortgage fraud tied to 2021 loan documents. Cook has denied any wrongdoing, and her lawyer said the dismissal violates the Federal Reserve Act. The case has sparked debate over the central bank’s independence.
For now, rate cut hopes are taking center stage. Markets are pricing in about an 85% chance that the Fed trims rates by a quarter point in September. Investors are also watching Friday’s release of the PCE price index, the Fed’s preferred inflation gauge, which could shape expectations for monetary policy.
In another development, Canary Capital filed with the SEC to launch an exchange-traded fund tied to the $TRUMP meme coin. The token, linked to former President Trump, debuted in January and quickly gained a following online. The filing faces hurdles, as the SEC typically requires a futures market before approving such crypto-based ETFs.
Meanwhile, Cathie Wood’s Ark Invest boosted its bet on Ethereum treasury firm BitMine Immersion. The firm bought $15.6 million worth of stock across several of its ETFs, even as BitMine shares moved lower. BitMine recently reported holdings of 1.71 million ETH, part of a crypto and cash stash worth $8.82 billion.
Altcoins were mixed but generally held steady. Ethereum slipped nearly 1% to $4,590 after setting a fresh record above $4,950 earlier this week. XRP added 0.2% to $3.01. Solana jumped 5%, Cardano rose about 1.2%, and Polygon traded flat.
Among meme tokens, Dogecoin climbed 2.7% while $TRUMP added 1%.