Bitcoin Jumps Above $87,000 as Dollar Weakens Amid Trump-Powell Uncertainty

Bitcoin has surged back above the $87,000 mark, climbing 2.5% in the past 24 hours to around $87,200, fueled by a weakening US dollar and increasing market uncertainty. The rally in Bitcoin, along with gains in gold, comes as US President Donald Trump's administration continues to publicly discuss the possibility of removing Federal Reserve Chair Jerome Powell.

Ethereum (ETH) also saw positive movement, trading at $1,640, up by 1.63% over the last day. In contrast, Solana (SOL) remained relatively flat, hovering around $140. The overall cryptocurrency market capitalization has increased by 1.90% in the past 24 hours, reaching $2.75 trillion, per Coinmarketcap data.

The gains in Bitcoin and gold appear to be correlated with a dip in the US dollar index, which plunged to a three-year low in early Asian trading on Monday. Analysts suggest this dollar weakness is partly driven by mounting market concerns following recent statements from White House economic adviser Kevin Hassett, who indicated that President Trump is still actively considering options to remove Fed Chairman Jerome Powell.

The prospect of a US president attempting to exert greater control over monetary policy, or even continuing a sustained public campaign against the head of the central bank, has unsettled traders. The traditional independence of the Federal Reserve is a cornerstone of its credibility and a key factor in maintaining stable global markets. The potential erosion of this independence is prompting investors to seek alternative safe-haven assets.

Adding fuel to this narrative, President Trump himself recently posted on Truth Social, declaring, "THE GOLDEN RULE OF NEGOTIATING AND SUCCESS: HE WHO HAS THE GOLD MAKES THE RULES." This statement, highlighting the long-standing association between wealth and power, appeared to resonate with market participants, further boosting both gold and Bitcoin. Gold reached a record high of $3,385 during early Asian trading, gaining nearly 2% in 24 hours.

While Bitcoin has historically sometimes moved inversely to a weakening dollar, often seen as competing safe-haven assets, the current rally suggests a potential "regime shift" where Bitcoin's role as a store of value is gaining prominence, potentially decoupling it from traditional correlations with tech stocks. However, some analysts, like those at Franklin Templeton Digital Assets, have recently reported data showing a stronger correlation between Bitcoin and tech equities than with gold over the past three years, cautioning against definitively labeling Bitcoin as purely "digital gold."