Bitcoin’s price surged 3.2% to $87,518 amid a declining US Dollar, reaching a three-year low. This increase follows speculation about the dismissal of Fed Chair Powell by Trump. Altcoins such as Ethereum and XRP also posted gains, reflecting the broader positive trend in the crypto market influenced by trade talks and currency concerns.
Bitcoin’s price rose to $87,518, marking a 3.2% increase, and reached its highest point since April 2. This surge corresponds with a decline in the US Dollar Index, which fell to a three-year low following hints from President Trump about potentially dismissing Federal Reserve Chair Jerome Powell. Bitcoin’s recovery reflects a substantial regaining of value lost after Trump’s announcement regarding reciprocal tariffs on April 2.
The appreciation of Bitcoin occurred alongside a significant drop in the dollar, a situation that prompts investors to seek alternative assets for preserving purchasing power. Bitcoin is increasingly considered a hedge against fiat currency devaluation, a sentiment echoed by the rise in gold prices to record highs. As faith in traditional currencies diminishes due to potential political interference in monetary policy, Bitcoin has gained traction among investors.
Trump’s remarks suggested an intention to influence Federal Reserve policy, calling for lower interest rates. These comments, amplified by an ongoing review of Powell’s position by White House economic advisors, have intensified market speculation. Amidst these developments, optimism regarding potential tariff negotiations with major trading partners, including Japan and China, has buoyed market sentiment in the cryptocurrency space.
In trade discussions, President Trump reported significant progress with a Japanese delegation aimed at easing tariff-related tensions. Furthermore, there are indications that China is willing to explore trade negotiations, albeit with conditions for improved mutual respect in discussions. This reduction in trade friction appears to have bolstered confidence in cryptocurrencies, reinforcing their investment appeal.
Following Bitcoin’s upward trend, other cryptocurrencies also exhibited gains. Ethereum, the second most valuable cryptocurrency, experienced a 2.6% increase to $1,647.57, while XRP climbed by 2.7% to $2.1276. Additionally, Solana saw a rise of 0.6%, and Cardano surged by 3%. Polygon also reported a 2.6% gain. Even meme tokens like Dogecoin increased by 2.4%, although the $TRUMP token remained relatively unchanged despite the president’s recent comments. This reaction within the cryptocurrency sector underscores the increasing importance of macroeconomic conditions and political events on digital asset performance.
