Bitcoin News: Bitcoin Breaks $87K as Dollar Sinks on Reports Trump Aims to Oust Fed Chair Powell

BTC and Gold Surge Amid Rising Concerns Over Federal Reserve IndependenceBitcoin jumped past $87,200 on Monday, hitting its highest level since early April as the U.S. dollar index (DXY) plunged to a three-year low, following reports that former President Donald Trump is exploring options to remove Federal Reserve Chair Jerome Powell.BTC rallied over 2% during early Asian hours, outpacing major altcoins including Ethereum (ETH), XRP, and Cardano (ADA), which posted more modest gains of around 1%. The move marked a bullish breakout from the consolidation zone between $83,000 and $87,000 that has held since early April.Dollar Index Falls to 98.5 as Traders React to Fed Shakeup SpeculationIn foreign exchange markets, hedge funds and institutional traders aggressively sold the U.S. dollar against the euro, yen, and Australian dollar, pushing the DXY to 98.5, its lowest point since April 2022. The dollar has now declined by 10% over the past three months, reflecting growing concerns over central bank credibility and economic uncertainty.“The move in Bitcoin to $87,000 appears to be driven by a sharp drop in the U.S. dollar and a 2% rally in gold, both triggered by Trump’s push to replace Fed Chair Powell,” said Markus Thielen, head of research at 10x Research.Gold Hits New All-Time High as Investors Seek SafetySafe-haven demand also drove gold prices to a record $3,382 per ounce, pushing its year-to-date gains to 28%. Analysts say the simultaneous surge in gold and Bitcoin underscores growing investor unease about monetary policy stability in the U.S.“Gold and Bitcoin are moving in tandem again — signaling market fears over inflation, rate policy, and now political pressure on the Fed,” noted one macro strategist.Trump’s Remarks Stir Market AnxietyReports began circulating late last week that Trump is exploring legal avenues to terminate Powell if re-elected. In a post on Truth Social, Trump stated that “Powell’s termination cannot come fast enough,” renewing his long-standing criticism of high interest rates and the Fed’s cautious stance.Chicago Fed President Austan Goolsbee responded on Sunday, warning that such a move would undermine the Fed’s credibility and independence, potentially spooking global markets further.Powell, for his part, reiterated last week that the Federal Reserve would remain data-dependent before any rate adjustments, but warned that the risk of stagflation is rising — a sentiment that could further complicate monetary policy heading into election season.