#BTCRebound rose more than 3% on Monday as the US dollar plunged 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
87,076.66
+3.02%
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 plummeted to its lowest level since March 2022 amid concerns about political interference in monetary policy.
White House economic adviser Kevin Hassett said on Friday that Trump and his team were exploring the legality of firing Powell.
"The removal of Powell cannot come fast 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. Notably, gold prices were trading at record 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 possible tariff negotiations with major US trading partners, including Japan and China.
Trump said last week that "great progress" had been made after 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.
