Bitcoin surged past $88,000 on Monday before settling around $86,800, marking its highest price since late March.
Bitcoin surged past $88,000 on Monday before settling around $86,800, marking its highest price since late March. The jump followed a sharp drop in the U.S. dollar, which hit a three-year low amid rising concerns over political interference in the Federal Reserve. Over the past 24 hours, data from CoinGlass showed more than $97 million in Bitcoin short positions were liquidated. Total liquidations across all cryptocurrencies approached $180 million, with Ethereum shorts accounting for over $26 million.
The dollar’s decline came after President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell. Trump wrote on Truth Social that “Powell’s termination cannot come fast enough,” after weeks of pressuring the central bank to cut interest rates. White House economic advisor Kevin Hassett confirmed that the administration was reviewing the legality of removing Powell. The comments triggered market volatility, pushing the U.S. Dollar Index down by more than 1% to levels last seen in March 2022.
At the same time, traditional financial markets took a hit. The Dow Jones Industrial Average, S&P 500, and Nasdaq all fell around 3% on Monday morning in New York. Analysts cited investor uncertainty about the Fed’s independence and broader macroeconomic instability as key drivers behind the sell-off.
Despite the pressure on equities, Bitcoin rose as investors turned to assets perceived as safer stores of value. Gold, another such asset, also continued its rise, trading above $3,420 per ounce—its highest price ever. While cryptocurrencies typically move in tandem with equities, Bitcoin’s performance on Monday suggested a potential shift, behaving more like a hedge against economic and political instability.
Ethereum, the second-largest digital asset, traded flat at around $1,624. It has fallen more than 20% in the last month. Dogecoin gained roughly 1.9%, XRP rose 0.15%, and MATIC jumped nearly 5%. Solana dipped slightly, losing about 0.5%. The TRUMP token also recorded gains of over 2%.
The uptick in Bitcoin's value followed recent developments in U.S. trade policy. Trump said “big progress” had been made after talks with a Japanese delegation, while reports indicated China may be willing to resume trade negotiations if treated with more respect. Earlier this month, Trump had announced a new round of tariffs, contributing to earlier market stress.
While markets remain volatile, the sharp rise in Bitcoin and gold reflects investor caution and a retreat from the U.S. dollar amid political and economic uncertainty.
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