According to a report, on Monday, Bitcoin price saw noticeable growth. The report further states that BTC has increased by more than 2.7 %. This made the coin reach around the value of $87,563, which is above the resistance level of $85k. This happened because the U.S. dollar became weaker and has fallen to its lowest level in three years.
This sharp dollar decline happened after the report stated that President Donald Trump might be trying to remove the Chairman of the Federal Reserve, Jerome Powell. Due to this news, investors are worried about the Fed’s independence; this caused many investors to sell off their dollars and move their money to safer Assets like Bitcoin or gold.
US Dollar Decline Causes Bitcoin Price Surge
The U.S. dollar index( DXY) has fallen to 9.85, which is its lowest point since April 2022. Hedge funds have sold the dollar for other major Cryptocurrencies like the yen, euro, and Australian dollar. The price of the dollar has dropped by 10% in the last three months. Because of this, financial conditions have become easier and have helped Bitcoin’s price to increase.
The recent dollar decline came after the announcement by the National Economic Council Director, Kevin Hassett. He made the claim that President Donald Trump is on a plan to dismiss Fed Chairman Powell from his position for not cutting the interest rates as expected by Trump.
In a Truth social post, Trump said that “the termination of Powell can not come fast enough,” and he also demanded that interest rates be lower; this increased the uncertainty about the U.S. monetary policy, which made the dollar decline even more. This helped Bitcoin’s price rise.
Bitcoin Price Leads Crypto Market Despite Market Volatility
The Bitcoin price has increased faster than the other major Cryptocurrencies. It has broken the level of $83,000 to $87,000 and has reached $87,200. Altcoins like XRP, Cardano(ADA), and Ethereum (ETH) have also risen, but their gains were smaller, which were just above 1% each.
Market experts say that the Bitcoin price has risen because people now see it as protection against the falling dollar and fears of inflation. The founder of 10x Research, Markus Thielen, told CoinDesk that the main reason for the rise in Bitcoin price and gold was the worry of investors that the Federal Reserve might lose its independence.
Broader Economic Context
The market was still under pressure, as no major trade deals were made. President Trump had released a list that accused the critics of unfair trade practices. At the same time, people have lost their confidence and are worried about the economy.
Fed chair Powell has spoken against Trump’s tariffs, and in response to this, Trump has threatened to fire him. This has caused more uncertainty in the market and has pushed the dollar to fall even further.
This week, many important questions and reports are coming out, like the Global Services and Manufacturing PMI on April 23, On April 24 Report of Durable Goods Orders, and Consumers Sentiment and Inflation Expectations on April 25. These reports might influence the Fed’s policy and market Sentiments.
Conclusion
On Monday, Bitcoin price has risen and has past the level of $87,000; this shows that it has now become the top choice for investors during uncertain times, especially with the dollar decline. Investors are closely watching for any signs of the direction of the monetary policy of the U.S.
FAQs
1. What impact did Trump’s recent action have on Bitcoin price
Trump’s growing tension with the Federal Reserve caused the Bitcoin price to go up.
2. How is the US dollar currently facing a decline?
The US dollar decline is caused by current economic uncertainty and puts pressure on the Fed’s action.
3. By how much is the U.S. Dollar Index low?
Currently, the U.S. Dollar Index has dropped to 98.5.
4. When was the DXY seen at its lowest?
Currently, DXY is at its lowest, 98.5, since April 2022.
Glossary
Dollar Index (DXY): An Index that shows the US dollar’s strong or weak status compared with other nations’ currencies
Federal Reserve: United States central bank
Jerome Powell: The present Chairman of the U.S. Federal Reserve
Source
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