Bitcoin surpassed $88,000, influenced by a falling U.S. dollar and political tensions regarding the Federal Reserve. Liquidations topped $97 million in Bitcoin shorts, with total cryptocurrency liquidations nearing $180 million. This surge contrasts with declines in traditional equity markets, as investors seek safe-haven assets amid economic uncertainties.
On Monday, Bitcoin’s value surged beyond $88,000 before settling at approximately $86,800, the highest recorded since March. This rise was attributed to a steep decline in the U.S. dollar, which reached a three-year low, heightened by fears of political influence over the Federal Reserve. In the past 24 hours, CoinGlass reported the liquidation of over $97 million in Bitcoin short positions, contributing to total liquidations of nearly $180 million across cryptocurrencies. Ethereum shorts accounted for more than $26 million in this statistic.
The dollar’s drop coincided with President Trump’s escalating criticism of Federal Reserve Chair Jerome Powell. Trump expressed on Truth Social that Powell’s dismissal should occur soon, pressuring the bank to reduce interest rates. White House economic advisor Kevin Hassett confirmed that the administration is scrutinising the legality of such a dismissal, causing a significant market reaction. Consequently, the U.S. Dollar Index fell over 1%, marking its lowest point since March 2022.
Traditional financial markets also experienced downturns, with the Dow Jones Industrial Average, S&P 500, and Nasdaq each declining approximately 3% during Monday’s morning session in New York. Analysts pointed to uncertainties regarding the Federal Reserve’s independence and overarching macroeconomic stability as key factors in the declining equity values.
In contrast to the pressure on stock markets, Bitcoin gained momentum as investors sought perceived safe-haven assets. Similarly, gold prices increased, reaching over $3,420 per ounce, a record high. Unlike typical correlations between cryptocurrencies and equities, Bitcoin’s ascent on Monday implied a potential role as a hedge against economic and political volatility.
Ethereum traded flat at around $1,624, experiencing a significant decrease of over 20% in the last month. Dogecoin saw a slight increase of 1.9%, while XRP and MATIC rose minimally. Conversely, Solana experienced a small decline of 0.5%, and the TRUMP token noted gains exceeding 2%.
This surge in Bitcoin values followed new developments in U.S. trade policies, where Trump claimed significant progress after discussions with a Japanese delegation and suggested that China might reconsider trade negotiations if treated respectfully. This month also witnessed Trump announcing new tariffs, adding to existing market pressures.
Amid ongoing market fluctuations, the rising values of Bitcoin and gold underline investor caution and a pivot away from the U.S. dollar in the context of political and economic uncertainties. Investors are encouraged to exercise discretion and conduct independent analysis regarding their investment decisions, as the article is intended solely for informative purposes.
