The rest of the Bitcoin and crypto markets surged earlier this week as President Trump engaged in Ethereum and Dogecoin won 3% within the last 24 hours.
“The $87,000 move in Bitcoin is a clear signal that investors are escaping diversified assets amid rising tariffs, inflation concerns and global economic uncertainty.”
The crypto market benefits come amid Trump’s threat of firing Federal Reserve Chairman Jerome Powell because he didn’t lower interest rates as quickly as he wanted. The feud raised concerns about the federal government’s traditional status as an independent central bank, its existence in political pressure. It is unlikely that the president has the power to eliminate Powell, but that could change in the future. On Friday, the White House confirmed it was “studying” whether Trump had the power to expel Powell before his term in 2026.
And while the crypto market enjoys relief rally, traditional stock markets continue to slip. The S&P 500 and Dow Jones made small profits from their early lows this month, but both indexes fell 3% on Monday.
And Trump’s public comments about Powell seem to have further dented the value of the US dollar. The currency has already fallen sharply since Trump took office in January, falling to its lowest level since 2022 on Monday compared to foreign currency.
With tariffs, inflation and Fed independence looming heavily, some people are investing in digital currencies, as they are detached from centralized entities, and can fluctuate independently of the stock market.
Bitcoin Mining Company Bit Mining Chief Economist Youui Yang told Fortune that Bitcoin could move in parallel with stocks in the short term and serve as a shelter from geopolitical pressures in the long term.
“In the early stages of a crisis, we often behave like a risky asset that plunges sharply in panic,” he said. “However, as the market stabilizes and investors revalues it, we can demonstrate the characteristics of a safe haven asset similar to gold.”
This story was originally featured on Fortune.com.