Bitcoin Surges Past $87,000 as Trump’s Fed Chair Controversy Drives Dollar Weakness

As Dollar Weakens, Bitcoin Surges: Trump’s Fed Chair Drama Sparks Market Shifts

Bitcoin Surges – Bitcoin (BTC) outperformed other cryptocurrencies early Monday, rising over 2% to $87,200, its highest level since April 2. The surge came as the U.S. dollar index (DXY) tumbled to a three-year low on reports that President Donald Trump is exploring ways to remove Federal Reserve Chairman Jerome Powell. BTC’s rise marked a bullish resolution to the recent consolidation between $83,000 and $87,000, leaving major alternative cryptocurrencies like XRP, Ethereum (ETH), and Cardano (ADA) trailing with gains of over 1%.

Dollar Weakness Fuels Risk Appetite and Bitcoin Rally

In the forex market, hedge funds sold the U.S. dollar against major currencies such as the euro, yen, and the Aussie dollar. This selling pressure drove the DXY down to 98.5, its lowest since April 2022, marking a 10% decline over the past three months. A weaker dollar typically alleviates financial conditions and boosts risk appetite in financial markets, which likely contributed to BTC’s rise.

At the same time, gold continued its rally, reaching an all-time high of $3,382 per ounce, marking a 28% gain year-to-date. Meanwhile, S&P 500 and Nasdaq futures traded 0.5% lower, reflecting broader market uncertainty.

Trump’s Fed Chair Comments Spark Market Volatility

The sharp drop in the dollar and the subsequent BTC surge were likely triggered by Trump’s comments regarding Jerome Powell. On Thursday, Trump posted on Truth Social, stating, “Powell’s termination cannot come fast enough,” while reiterating his calls for lower interest rates. This sentiment led to the dollar’s decline and a +2% rally in gold, both contributing to the BTC price rise.

As Trump’s push to replace Powell intensifies, market observers are closely watching for any developments that could further impact financial markets. Markus Thielen, founder of 10x Research, stated that BTC’s movement to $87,000 appears to be driven by the growing threat to Fed independence.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.