Bitcoin settled around $86,800 after surged beyond $88,000 on Monday, hitting its highest price since late March. The jump hit a three-year low amid growing concern over political interference in the Federal Reserve following a sharp decline in the US dollar. Over the past 24 hours, Coinglass data showed that over $97 million in Bitcoin short positions have been settled. All cryptocurrency liquidation approached $180 million, with Ethereum shorts accounting for more than $26 million.
The decline in the dollar comes after President Donald Trump strengthened his criticism of Federal Reserve Chairman Jerome Powell. Trump wrote on social terms of the truth, “Powell’s ending cannot be fast enough.” White House economic adviser Kevin Hassett confirmed that the administration is considering legality to eliminate Powell. Comments caused market volatility, pushing the US dollar index down by more than 1% to the level it finally saw in March 2022.
At the same time, traditional financial markets became a hit. The Dow Jones industrial average, S&P 500 and Nasdaq fell by about 3% on New York’s Monday morning. Analysts cited investors’ uncertainty regarding the Fed’s independence and broader macroeconomic instability as the key driver behind the sale.
Despite the pressure on stocks, Bitcoin rose as investors turned to assets that are perceived as valuable and safer stores. Another such asset, Gold, has also continued to rise, trading at over $3,420 per ounce. This is the best price ever. Cryptocurrencies usually move in conjunction with stocks, but Bitcoin’s performance on Monday hinted at changes that could act like a hedge against economic and political instability.
Ethereum, the second largest digital asset, traded flat for around $1,624. Last month there was a decline of more than 20%. Dogecoin jumped about 1.9%, XRP jumped 0.15%, while Matic jumped nearly 5%. Solana was slightly soaked and lost about 0.5%. The Trump Token also recorded profits of over 2%.
The increase in Bitcoin’s value followed the recent development of US trade policy. Trump said “great progress” was made after talks with the Japanese delegation, but the report said China might be willing to resume trade negotiations if treated with more respect. Earlier this month, Trump announced new tariffs, contributing to previous market stress.
The market remains volatile, but the sharp rise in Bitcoin and gold reflects investors’ attention and a setback from the US dollar amid political and economic uncertainty.