Bitcoin (BTC) surpassed alternative cryptocurrencies otherwise volatile on Monday while the dollar index crashed to a lower on three years on information that President Donald Trump explores means to withdraw the president of the Federal Reserve Jerome Powell.
The BTC increased by more than 2% to $ 87,200, reaching the highest since April 2, according to Data Source Coindesk. This decision has marked an upward resolution to the recent consolidation between $ 83,000 and $ 87,000. The main alternative cryptocurrencies such as XRP focused on payments, Ethereum ether and Cardano ADA increased by more than 1% each, late BTC.
In the FX markets, the Hedge Funds sold the US dollar against the main currencies, including Euro, Yen and the Australian dollar, bringing the dollar index to 98.5, the lowest since April 2022, according to data from the tradingView mapping platform. DXY has decreased by 10% in three months. The weakness of the dollar generally softens financial conditions, engraving risk taking on the financial markets.
Meanwhile, the Gold rally continued, the price per ounce reaching a record of $ 3,382, bringing the year to 28%. The term contracts linked to the S&P 500 and the NASDAQ exchanged 0.5% less.
Observers suggest that the comment of the director of the National Economic Council Kevin Hassett on Friday concerning Trump’s intention to withdraw Powell probably launched the sale of the dollar, as well as BTC and gold increases.
“The Bitcoin move to $ 87,000 seems to be driven by a sharp drop in the US dollar and a rally of + 2% in gold, both triggered by Trump’s push to replace the president of the Fed Powell. Although a commercial agreement with Japan can be announced soon, the key catalyst today is the perceive discussion thread in Fed Independence”, said Markus Thielen, Research, told Coindesk.
Trump posted on Truth Social Thursday that “Powell’s dismissal cannot come fairly quickly”, while reiterating calls for interest rates the next day. At the beginning of last week, Powell said that the Fed would expect more data on the economy before changing the borrowing cost while warning stagflation.
The president of the Fed of Chicago, Austan Goolsbee, warned that Trump’s decision to put an end to Jerome Powell would undermine the credibility of the Fed.
