Dollar Tanks, Bitcoin Rockets Past $87K with Trump Eyeing Ouster of Fed’s Powell

Bitcoin Soars Past $87K as Trump Targets Fed Chair, Dollar Hits 3-Year Low

Bitcoin surged past $87,000 early Monday, leading the crypto market higher as political pressure on the Federal Reserve sparked a sharp sell-off in the U.S. dollar.

Reports that President Donald Trump is actively seeking to remove Fed Chair Jerome Powell rattled markets, raising alarms over central bank independence. In response, traders dumped the dollar, sending the dollar index (DXY) crashing to 98.5 — its lowest level since April 2022.

Bitcoin jumped over 2% to $87,200, marking a breakout from recent consolidation between $83K and $87K, according to CoinDesk. Altcoins like Ethereum (ETH), XRP, and Cardano (ADA) also posted gains, though they lagged behind BTC’s momentum.

The foreign exchange market saw heavy selling of the greenback against the euro, yen, and Australian dollar, fueled by renewed political interference concerns. The DXY has now lost 10% over the past three months, a drop that has broadly boosted risk assets.

Gold surged in tandem, notching a fresh all-time high of $3,382 per ounce and bringing its year-to-date gain to 28%. U.S. stock futures wobbled, with S&P 500 and Nasdaq contracts each down around 0.5%.

Fueling the fire was a statement from National Economic Council Director Kevin Hassett, who confirmed on Friday that Trump is “exploring options” to dismiss Powell.

“The spike in Bitcoin and gold is a direct response to dollar weakness triggered by Trump’s campaign to remove Powell,” said Markus Thielen of 10x Research. “Markets are reacting to what they see as a full-on challenge to the Fed’s independence.”

Trump intensified his criticism on Truth Social last Thursday, saying “Powell’s termination cannot come fast enough,” and again demanded rate cuts. Powell, however, signaled the Fed would remain cautious, citing uncertainty and stagflation risks.

Chicago Fed President Austan Goolsbee warned that any move to oust Powell could severely damage the Fed’s credibility.