Here’s Why Bitcoin’s Price Surged Today

A new analysis by 10x Research links Bitcoin's climb toward $88,000 to two main forces: a weaker U.S. dollar and the recent strength in gold.

Here’s a summary of the analysis from 10x Research, linking Bitcoin’s surge toward $88,000 to a weaker U.S. dollar and the recent strength in gold.

The analysis also delves into growing investor skepticism toward the Federal Reserve maintaining its independence amid political interference.

According to Markus Thielen, head of research at 10x Research, a 0.7% decline in the dollar index against the euro and a 2% increase in gold prices contributed to Bitcoin’s gains.

In particular, Thielen highlighted the implications of former President Donald Trump’s reported attempts to replace Federal Reserve Chair Jerome Powell.

As the report notes, these efforts, allegedly made during the 2024 presidential campaign, sparked broader shifts in the market.

With the former president allegedly aiming to select a candidate more favorable to his administration’s agenda, investors grew wary of the central bank’s ability to operate autonomously, especially amid political pressure.

This, in turn, pushed investors toward alternative stores of value, such as gold and Bitcoin, the analysis stated.

While some traders are focused on the unfolding situation with U.S. President Biden’s planned visit to Japan in the coming days, concerns over central bank independence appear to be taking center stage in the broader market trends, the report concluded.

On the technical side, Thielen observed that Bitcoin has broken out of a descending channel, which is part of a broader Falling Wedge formation.

This structure is typically viewed as bullish in technical analysis. It involves a reduction in trading volume as prices move within the wedge, followed by a breakout with increased volume, indicating a shift in market momentum.output: A new analysis by 10x Research has linked Bitcoin’s recent surge toward the $88,000 level to two main factors: a weaker U.S. dollar and the recent strength in gold.

The analysis, provided by Markus Thielen, head of research at the firm, also delves into growing investor skepticism toward the Federal Reserve maintaining its independence amid any political interference.

As reported by 10x Research, a 0.7% decline in the dollar index against the euro and a 2% increase in gold prices contributed to Bitcoin’s gains.

In particular, Thielen highlighted the implications of former President Donald Trump’s reported attempts to replace Federal Reserve Chair Jerome Powell.

As the report notes, these efforts, allegedly made during the 2024 presidential campaign, sparked broader shifts in the market.

With the former president reportedly aiming to select a candidate who would be more responsive to the administration’s agenda, investors grew wary of the central bank’s ability to operate autonomously, especially amid any political pressure.

And this, in turn, pushed investors toward alternative stores of value, such as gold and Bitcoin, the analysis stated.

“With the U.S. dollar beginning the week weaker and gold prices rising by 2%, we saw cryptocurrency prices firm on Monday,” said Thielen.

“A report last week claimed that former President Trump planned to make central bank policy a key part of his 2024 presidential campaign.”

According to the report, Trump’s plans to replace Fed Chair Jerome Powell with a candidate more favorable to his administration’s agenda reportedly sparked broader shifts in the market as investors grew concerned over the central bank’s ability to maintain independence, especially amid any political pressure.

As a result, investors reportedly began shifting out of the U.S. dollar and toward alternative assets like gold and Bitcoin.

However, some traders are focused on the unfolding situation with U.S. President Biden’s planned visit to Japan in the coming days.