On Monday, Bitcoin crossed the $87,600 threshold, marking its highest price point since late March. The increase comes amid growing investor anxiety related to former President Donald Trump’s latest attempts to unseat Federal Reserve Chairman Jerome Powell.
The cryptocurrency spiked more than 3%, recovering most of its earlier losses instigated by Trump’s “Liberation Day” tariff announcement, which had sent shockwaves through international markets.
This surge coincided with a decline in the dollar’s value and a drop in US stock futures, as traders reflected on comments made by National Economic Council Director Kevin Hassett last Friday.
Concerns Over Trump’s Bid to Oust Powell Intensify Market Turmoil
Hassett revealed that Trump is investigating the legality of firing Powell, which has raised serious concerns about the political autonomy of the Federal Reserve. A significant measure of the dollar slipped to its lowest point since January 2024, indicative of widespread market apprehension.
As Bitcoin rallied, gold also experienced a notable increase, achieving a new all-time high. These assets are commonly viewed as safeguards against inflation and systemic risk, suggesting that investors are preparing for possible disruptions in conventional markets.
Trump has had ongoing disagreements with Powell regarding interest rates and monetary policy. Although current legislation prohibits a sitting president from dismissing the Fed chair without valid cause, a pending Supreme Court case regarding presidential oversight of independent agencies has brought this topic back to the forefront. A ruling favoring Trump could heighten the risk of political meddling in central banking.
White House economic adviser Kevin Hassett stated on Friday that Trump and his team are exploring options regarding the potential firing of Federal Reserve Chair Jerome Powell, signaling serious implications for the central bank’s… https://t.co/JN9lImo3Xl pic.twitter.com/uXCcjGRhu5
— Reuters (@Reuters) April 19, 2025
In a recent interview with Finance Newso, Senator Elizabeth Warren cautioned that any attempt to remove Powell could have severe repercussions on the markets. “If Chairman Powell can be fired by the President of the United States, it will crash the markets in the United States,” she stated. Although Warren has been a long-time critic of Powell, she advocates for his continued leadership to maintain the Federal Reserve’s institutional independence.
Bitcoin’s Price Surge Follows Significant Recovery from April Lows
Bitcoin’s upward trend gathered momentum as it reclaimed vital technical metrics. Himanshu Maradiya, founder of CIFDAQ Group, noted that the cryptocurrency had rebounded robustly from its April 20 low, rising over $3,000 in a single day. This movement signifies a 16% recovery from its 2025 low of below $75,000.
“Bitcoin is breaking out, reclaiming the $87,000 mark after recovering from its early April slump,” Maradiya remarked, highlighting the renewed bullish sentiment and the potential for the price to reach between $90,000 and $94,000. He also mentioned that the current market rally defied expectations for a pullback around Easter, signaling broader strength within the cryptocurrency sector.
