Trump's pressure on the Federal Reserve causes the dollar to plummet, Bitcoin begins a rebound frenzy
Bitcoin rose about 3% on Monday, reaching $87,600, marking its highest level since Trump announced reciprocal tariffs. The dollar plummeted due to market concerns over Trump's attempt to remove Federal Reserve Chairman Powell, with the dollar index falling to its lowest point since January 2024. Meanwhile, gold prices surged again, reflecting investors' demand for safe-haven assets. Analysts pointed out that the weak dollar drove the rise in cryptocurrencies, but insufficient liquidity could lead to an exaggerated upward trend
According to the Zhitong Finance APP, Bitcoin has risen to its highest level since U.S. President Donald Trump announced reciprocal tariffs on what is referred to as "Liberation Day." Meanwhile, the dollar has plummeted as the market grows concerned about Trump's attempts to remove Federal Reserve Chairman Jerome Powell. Bitcoin rose about 3% on Monday, reaching $87,600, recovering most of the losses since Trump announced the tariffs on April 2.
Bitcoin reaches its highest level since the tariff announcement on April 2
This rebound in Bitcoin comes as the dollar and U.S. stock index futures fell on Monday, following Trump's criticism of the Federal Reserve, which raised concerns about the institution's independence. Kevin Hassett, director of the National Economic Council, stated last Friday that Trump is still exploring ways to dismiss Federal Reserve Chairman Powell, after which the dollar index fell to its lowest point since January 2024.
Notably, gold prices surged to new highs on Monday, further highlighting investors' demand for safe-haven assets and inflation-hedging assets.
Sean McNulty, head of derivatives trading for FalconX in the Asia-Pacific region, stated, "The weakness of the dollar has driven the rise in cryptocurrencies." However, he added that the "holiday liquidity shortage" in the cryptocurrency market has led to an "exaggerated rally."