Bitcoin surged past $87,600 on Monday, reaching its highest level since late March, as investor concerns mounted over former US President Donald Trump’s renewed efforts to remove Federal Reserve Chairman Jerome Powell.
The cryptocurrency rose more than 3%, erasing most of the losses triggered earlier this month following Trump’s “Liberation Day” tariff declaration that had sent shockwaves through global markets.
The jump came as the dollar weakened and US stock futures dipped, with traders reacting to comments made by National Economic Council Director Kevin Hassett on Friday.
Trump’s Inquiry Into Firing Powell Fuels Dollar Slide and Market Anxiety
Hassett said Trump is exploring whether he can legally dismiss Powell, raising fresh doubts over the Fed’s political independence. A key gauge of the dollar dropped to its lowest level since Jan. 2024, reflecting the broader unease.
Bitcoin’s rebound was accompanied by a similar move in gold, which climbed to a new record high. Both assets are widely seen as hedges against inflation and systemic risk, and their gains suggest investors are increasingly positioning for potential instability in traditional markets.
Trump has repeatedly clashed with Powell over interest rates and the direction of monetary policy. While the law does not allow a sitting president to fire the Fed chair without cause, a pending Supreme Court case concerning presidential authority over independent agencies has brought the issue back into focus. A ruling in Trump’s favor could raise the likelihood of political interference in central banking.
Sen. Elizabeth Warren, speaking to CNBC, recently warned that any move to remove Powell could have far-reaching consequences. “If Chairman Powell can be fired by the President of the United States, it will crash the markets in the United States,” she said. Warren, a longtime critic of Powell, said she nonetheless supports his continued tenure in order to protect the institutional independence of the central bank.
Bitcoin Breaks Out as Price Rebounds Sharply From April Low
Bitcoin’s momentum continued to build as it reclaimed key technical levels. Himanshu Maradiya, founder of CIFDAQ Group, said the asset had bounced back strongly from its April 20 low. It rose more than $3,000 in a single day. The move marked a 16% recovery from its 2025 low of under $75,000.
“Bitcoin is breaking out, reclaiming the $87,000 mark after recovering from its early April slump,” Maradiya said, pointing to renewed bullish momentum and a potential run toward the $90,000 to $94,000 range. He added that the current rally had defied expectations of a pullback over Easter and suggested broader strength across the crypto market.
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