Market Overview
Bitcoin saw a recovery early Monday in Singapore, with its value rising by around 3%, climbing past the $87,600 mark. This comes after a recent downturn caused by the April 2 announcement of reciprocal tariffs by former U.S. President Donald Trump. The U.S. dollar index simultaneously dropped to its lowest level since January 2024.
Main Development
The cryptocurrency market showed signs of a rebound as the dollar weakened, following reports about the former president’s consideration of removing Federal Reserve Chairman Jerome Powell. This raised concerns over the Federal Reserve’s independence and added to market unease.
Bitcoin’s upward movement occurred in parallel with gains in gold prices, which reached a new all-time high. This suggests a broader market trend favoring assets typically viewed as stable during times of inflation or economic uncertainty.
Context and Background
On April 2, an announcement regarding reciprocal trade tariffs led to market volatility, impacting various financial instruments including Bitcoin. The dollar’s decline began to accelerate after comments from National Economic Council Director Kevin Hassett, who confirmed that the former president was looking into the legal scope of dismissing the Federal Reserve chair.
Holiday-related thin liquidity in the crypto markets also contributed to sharper price movements during this time.
Recent statements by the former president on social media criticized Powell’s stance on maintaining current interest rates. Additionally, past remarks from political figures, including Democratic Senator Elizabeth Warren, highlighted potential risks associated with attempts to alter the leadership of the Federal Reserve.
Summary
Bitcoin’s latest price increase follows a period of market disruption sparked by trade policy announcements and renewed scrutiny of central bank independence. The weakening of the U.S. dollar and rising gold prices reflect investor caution amid growing political and economic uncertainty.
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