Investing.com-- Bitcoin climbed o Monday, underpinned by a slump in the U.S. dollar to a three-year low, driven by concerns over the Federal Reserve’s independence after President Donald Trump hinted at firing Fed Chair Jerome Powell.
The world’s largest cryptocurrency jumped 3.23.6% to $87,275.7 by 3:34 ET p.m., hitting its highest level since April 2.
The token regained most of the ground it had lost since the announcement of Trump’s reciprocal tariffs on April 2.
Dollar hits 3-year low on Fed shake-up fears
The gains came as the US Dollar Index plunged to its lowest level since March 2022 amid concerns over political interference in monetary policy.
White House economic advisor Kevin Hassett said on Friday that Trump and his team were studying the legality of firing Powell.
"Powell’s termination cannot come fast enough!” Trump wrote in a Truth Social post while calling for the Fed to cut interest rates.
When the value of the dollar falls, investors often seek alternative assets to preserve their purchasing power.
Bitcoin, like gold, is viewed as a hedge against currency devaluation. Notably, gold prices were trading at a record high on Monday.
Bitcoin is also widely seen as a hedge against currency debasement and political instability. The token found support as confidence in traditional fiat currencies wavered.
The cryptocurrency was also supported by signs of possible tariff negotiations with major U.S. trading partners, including Japan and China.
President Trump said last week “big progress” was made after a meeting with a Japanese trade delegation in Washington, as the two nations opened talks aimed at resolving tensions over a wave of U.S. tariffs.
A Bloomberg report last week also showed that China was open to beginning trade talks with the Trump administration, but is demanding that the White House show more respect.
Crypto price today: altcoins mostly higher
Altcoins were also mostly higher on Monday, experiencing similar gains to Bitcoin.
World no.2 crypto Ethereum rose 3.4% to $1,578.43.
World no. 3 crypto XRP rose 0.4% to $2.09.
Solana fell 0.4%, while Cardano advanced 0.7%, and Polygon added 5.2%
Among meme tokens, Dogecoin rose 2.3%, while $TRUMP added 1.3%.
Ayushman Ojha contributed to this report.