Bitcoin (BTC) Price Jumps 3% as the US Dollar Slumps to Three-Year Low

Bitcoin jumped more than 3% on Monday as the U.S. dollar slumped to a three-year low. The price movement came after President Donald Trump suggested he might

President Donald Trump's suggestion that he might fire Federal Reserve Chair Jerome Powell saw the U.S. dollar slide to three-year lows on Monday. This price move also saw Bitcoin price rise more than 3%.

The world’s largest cryptocurrency climbed 3.2% to $87,518 by 02:31 ET (06:31 GMT), reaching its highest level since April 2.

With this price increase, Bitcoin has now recovered a large portion of the value it lost following Trump's announcement of reciprocal tariffs on April 2.

The gains coincided with the US Dollar Index sliding to its lowest point since March 2022, as investors expressed concerns about potential political interference in monetary policy.

However, White House economic advisor Kevin Hassett stated on Friday that Trump and his team were examining the legality of removing Powell from his position.

"Powell’s Demise Can’t Come Fast Enough! " Trump penned in a Truth Social post.

"The Federal Reserve is clueless, they aren’t cutting interest rates, despite the huge problems in the markets. They are raising rates in a 'stiffening economy', and have no idea about what’s going on in China with respect to currency.

"Will Announce the Savings to the Country from the Trade Deals on Monday at 11:00 A.M. in the East Hall of the White House. Press and Public Invited! They are truly great deals, done in record time. Small part of Factor in Paydown of National DEBT!"

When the dollar becomes weaker, investors usually seek out alternative assets to help them maintain their purchasing power.

Bitcoin, which is frequently seen as a hedge against currency devaluation like gold, is also being used by investors to diversify their portfolios amid political uncertainty.

Investors are turning to the token for protection against currency debasement and political unrest as confidence in traditional fiat currencies is seen to be decreasing.

The cryptocurrency also received support from signs of possible tariff negotiations with major U.S. trading partners, including Japan and China.

President Trump reported “big progress” after meeting with a Japanese trade delegation in Washington, as the two countries began discussions to resolve tensions over U.S. tariffs.

Meanwhile, a Bloomberg report last week stated that China is open to starting trade talks with the Trump administration, but it demanded that the White House show more respect in these negotiations.

This potential easing of trade tensions appeared to be providing additional support for cryptocurrency markets.

Other cryptocurrencies also traded higher on Monday, displaying similar gains to Bitcoin.

Ethereum, the second-largest cryptocurrency by market value, moved up 2.6% to $1,647.57.

XRP, the cryptocurrency of payment start-up Ripple, advanced by 2.7% to reach $2.1276, continuing its strong performance in 2024.

Solana slid 0.6%, while Cardano moved up by 3%.

Polygon also rose by 2.6% as the broader crypto market displayed an upward trend.

Among meme tokens, Dogecoin was seen trading 2.4% higher, while the Trump-themed cryptocurrency $TRUMP remained largely unchanged despite the news about the president's Fed comments.