#BTCRebound — Bitcoin rose more than 3% on Monday as the US dollar plummeted to three-year lows, driven by concerns about the independence of the Federal Reserve after President Donald Trump hinted at firing Fed Chairman Jerome Powell. The world's largest cryptocurrency rose 3.2% to $87,518.0 at 8:31 AM (Spanish time), reaching its highest level.
BTC
87,832.2
+3.9%
The token recovered most of the ground it had lost since Trump's announcement of reciprocal tariffs on April 2.
The gains came as the US Dollar Index fell to its lowest level since March 2022 amid concerns about political interference in monetary policy.
White House economic advisor Kevin Hassett said on Friday that Trump and his team were studying the legality of firing Powell.
"The removal of Powell cannot come quickly enough!" Trump wrote in a post on Truth Social while urging the Fed to cut interest rates.
When the value of the dollar falls, investors often seek alternative assets to preserve their purchasing power.
Bitcoin, like gold, is seen as a hedge against currency devaluation. It's noteworthy that gold prices were trading at historic highs on Monday.
Bitcoin is also widely considered a protection against monetary degradation and political instability. The token found support as confidence in traditional fiat currencies wavered.
The cryptocurrency also received support from signals of potential tariff negotiations with the US's major trading partners, including Japan and China.
Trump said last week that "great progress" had been made following a meeting with a Japanese trade delegation in Washington, as the two countries began talks aimed at resolving tensions over a wave of US tariffs.
