Gold and Bitcoin Prices Surge Amid Political Turmoil and Dollar Decline

Bitcoin and gold are rallying due to political tensions and a weakening US dollar. Bitcoin reached $87,500, and gold hit a record $3,400 per ounce. Trump’s attacks on Fed Chair Powell and new tariffs on China contribute to market instability, causing investors to seek refuge in these assets.

Bitcoin and gold prices have witnessed significant increases as the markets react to escalating political tensions involving Donald Trump and Jerome Powell, the Federal Reserve Chair. The US dollar index has fallen to a three-year low, which has further contributed to the rising value of these assets. This morning, Bitcoin surged to a one-and-a-half-month high of $87,500, while gold reached a remarkable $3,400 per ounce, marking its highest price ever.

The decline of the US dollar index, now near 98—the lowest since early 2022—has been driven by fears of intensified political pressure on the Federal Reserve alongside ongoing global trade disputes. Trump’s rhetoric surrounding hard money was echoed on his Truth Social platform when he stated, “He who has the gold makes the rules!” This sentiment, followed by a surge in gold prices, demonstrates investor reaction to the broader economic climate.

Investor confidence has been rattled by Trump’s attacks on Fed Chair Jerome Powell, accusing him of maintaining „excessively high” interest rates. Speculation regarding Powell’s potential dismissal has caused market anxiety, with predictive market odds indicating a 21% chance of him being ousted, though these have since declined. Elizabeth Warren cautioned that such an action could lead to market chaos.

Concurrent to these developments, the Trump administration has introduced extensive tariffs on Chinese imports, eliciting stern warnings from Beijing, which threatens aggressive countermeasures amid fears of greater disruptions to global supply chains.

Despite facing earlier declines that pushed Bitcoin’s price to below $75,000 earlier this month, the current geopolitical turmoil is presenting Bitcoin, often described as “digital gold”, with renewed relevance. Critics have previously suggested that Bitcoin does not function as a robust safe-haven asset; however, recent trends indicate a shifting perception, especially amid its decoupling from stock market correlations.