Bitcoin (BTC) eclipsed alternative cryptocurrencies in another way volatile on early Monday when the dollar index crashed into a minimum of three years in reports that President Donald Trump is exploring ways to eliminate the president of the Federal Reserve, Jerome Powell.
BTC increased more than 2% to $ 87,200, reaching the top since April 2, according to Data Source Coindesk. The measure marked an upward resolution to the recent consolidation between $ 83,000 and $ 87,000. The main alternative cryptocurrencies, such as XRP centered on payments, Ethereum’s Ether and Cardano, Cardano’s ADA increased more than 1% each, delaying the BTC.
In the FX markets, the coverage funds sold the US dollar against the main currencies, including the euro, the YEN and the Australian dollar, which takes the dollar index to 98.5, the lowest since April 2022, according to data from the TradingView platform. DXY has decreased by 10% in three months. The weakness in the dollar generally relieves financial conditions, greasing risk taking in financial markets.
Meanwhile, the Gold rally continued, with the ounce price reaching a record of $ 3,382, carrying the profit of the year to the year 28%. Futures linked to S&P 500 and Nasdaq quoted 0.5% lower.
The observers suggest that the comment of the director of the National Economic Council Kevin Hassett on Friday about Trump’s intention to eliminate Powell probably triggered the sale of the dollar, along with the increase in BTC and Gold.
“The Bitcoin movement at $ 87,000 seems to be driven by a strong drop in the US dollar and a 2% gold rally, both caused by Trump’s impulse to replace the president of the Fed Powell. While a commercial agreement with Japan can be announced soon, the key catalyst today is the perceived thread for the independence of the Fed,” Markus Thien, founder of 10x Research, Coindesk said.
Trump published in Truth Social that “Powell’s termination cannot be quick enough,” while reiterating the calls to lower interest rates the next day. At the beginning of last week, Powell said the Fed would expect more data on the economy before changing the cost of indebtedness while warning about stagning.
The president of the Fed of Chicago, Austan Goolsbee, warned that a Trump measure to end with Jerome Powell would undermine the credibility of the Fed.
