Rises 3.2% to $87,518 as Dollar Hits Three-Year Low

TLDR

• Bitcoin surged 3.2% to $87,518, reaching its highest level since April 2
• The US Dollar Index fell to a three-year low after Trump hinted at firing Fed Chair Powell
• Bitcoin regained most losses incurred since Trump’s reciprocal tariffs announcement on April 2
• Altcoins followed Bitcoin’s upward trend with Ethereum, XRP, and Cardano all posting gains
• Trump’s administration is engaging in trade talks with Japan and potentially China

Bitcoin jumped more than 3% on Monday as the U.S. dollar slumped to a three-year low. The price movement came after President Donald Trump suggested he might fire Federal Reserve Chair Jerome Powell.

The world’s largest cryptocurrency rose 3.2% to $87,518 by 02:31 ET (06:31 GMT). This marks Bitcoin’s highest level since April 2.

With this price increase, Bitcoin has recovered most of the ground it lost following Trump’s announcement of reciprocal tariffs on April 2.

The gains coincided with the US Dollar Index falling to its lowest point since March 2022. Investors expressed concerns about potential political interference in monetary policy.

White House economic advisor Kevin Hassett stated on Friday that Trump and his team were examining the legality of removing Powell from his position.

Dollar Weakness Boosts Bitcoin

Trump made his views clear in a Truth Social post, writing: “Powell’s termination cannot come fast enough!” He also called for the Federal Reserve to cut interest rates.

When the dollar weakens, investors typically look for alternative assets to maintain their purchasing power.

Bitcoin, similar to gold, is often viewed as a hedge against currency devaluation. Gold prices were also trading at record highs on Monday.

Many investors see Bitcoin as protection against currency debasement and political uncertainty. The cryptocurrency found support as confidence in traditional fiat currencies wavered.

The token also received a boost from possible tariff negotiations with major U.S. trading partners, including Japan and China.

Trade Talk Developments

President Trump reported “big progress” after meeting with a Japanese trade delegation in Washington. The two countries have begun discussions aimed at resolving tensions over U.S. tariffs.

A Bloomberg report last week indicated that China is open to starting trade talks with the Trump administration. However, China is reportedly demanding that the White House show more respect in these negotiations.

This potential easing of trade tensions appears to have provided additional support for cryptocurrency markets.

Altcoins Rise with Bitcoin

Other cryptocurrencies also traded higher on Monday, showing similar gains to Bitcoin.

Ethereum, the second-largest cryptocurrency by market value, rose 2.6% to $1,647.57.

XRP jumped 2.7% to $2.1276, continuing its strong performance this year.

Solana gained a modest 0.6%, while Cardano advanced 3%.

Polygon added 2.6% to its value as the broader crypto market moved upward.

Among meme tokens, Dogecoin rose 2.4%, while the Trump-themed cryptocurrency $TRUMP remained largely unchanged despite the news about the President’s Fed comments.

The cryptocurrency market’s reaction shows how closely digital assets are now tied to macroeconomic factors and political developments.

Bitcoin’s price reaction demonstrates how the cryptocurrency continues to be influenced by both U.S. monetary policy and international trade relations.

As the dollar fell to a three-year low, Bitcoin’s appeal as an alternative store of value became more apparent to investors seeking to preserve their wealth.