Bitcoin (BTC) exceeded the otherwise volatile alternative cryptocurrencies early Monday when the dollar index crashed to a three-year low on reports that President Donald Trump is investigating ways to remove Federal Reserve President Jerome Powell.
BTC rose over 2% to $ 87,200 and hit the highest since April 2, according to Data Source Coindesk. The move marked a bullish decision to the recent consolidation between $ 83,000 and $ 87,000. Larger alternative cryptocurrencies such as payments-focused XRP, Ethereums ether and Cardanos Ada rose over 1% each where he hangs BTC.
At Markets, for example, hedge funds sold the US dollar against larger currencies, including euros, yen and Aussie dollar, which ran the dollar index to 98.5, the lowest since April 2022, according to data from card platform trading. DXY has dropped by 10% in three months. Weakness of the dollar typically facilitates financial conditions and lubricates risk taking in the financial markets.
Meanwhile, the Gold Rally continued, with the price per. Ounce that reached a record height of $ 3,382, that year to date gain to 28%. Futures tied to S&P 500 and NASDAQ traded 0.5% lower.
Observers suggest that Director of National Economic Council Kevin Hassett’s comment Friday about Trump’s intention to remove Powell probably triggered the sale of the dollar along with Upticks in BTC and Gold.
“The move in Bitcoin to $ 87,000 appears to be driven by a sharp fall in the US dollar and a +2% -rally in gold, both triggered by Trump’s push to replace Fed -President Powell. While a trade agreement with Japan may soon be announced, the most important catalyst tells the perceived thread to feed independence,
Trump posted on Truth Social Thursday that “Powell’s termination cannot come fast enough,” while repeating calls for lower interest rates the following day. Early last week, Powell said Fed would wait for more data about the economy before changing the loan costs while warning of stagflation.
Chicago Fed -President Austan Goolsbee warned that a step from Trump to end Jerome Powell would undermine Fed’s credibility.
