Bitcoin Rockets Past $87,000 As Trump-Powell Sends Dollar Reeling and Political Uncertainty Fuels Safe-Haven Demand

Bitcoin has stormed back above the $87,000 threshold, surging 2.5% in the past 24 hours to trade around $87,200—a move powered by a weakening US dollar and mounting market anxiety over political meddling in monetary policy.

The world’s largest cryptocurrency is rallying in tandem with gold, as investors scramble for safe-haven assets amid renewed speculation that former President Donald Trump could remove Federal Reserve Chair Jerome Powell.

Ethereum (ETH) also saw positive movement, trading at $1,640, up by 1.63% over the last day. In contrast, Solana (SOL) remained relatively flat, hovering around $140.

The overall cryptocurrency market capitalisation has increased by 1.90% in the past 24 hours, reaching $2.75 trillion, per Coinmarket cap data.

The rally comes as the US dollar index plunged to a three-year low in early Asian trading, amplifying demand for non-sovereign assets like Bitcoin and gold.

Analysts pointed out that the crash of the US dollars comes after heightened uncertainty after White House adviser Kevin Hassett confirmed that Trump is still considering booting Jerome Powell from his seat as the Fed chair.

This news has also started raising fears about the erosion of Federal Reserve independence—a key pillar of global market stability. The potential erosion of this independence is prompting investors to seek alternative safe-haven assets.

Gold also soared to a new all-time high of $3,385, gaining nearly 2% in 24 hours after Trump’s latest social media post that says

“THE GOLDEN RULE OF NEGOTIATING AND SUCCESS: HE WHO HAS THE GOLD MAKES THE RULES”

And it seems that investors are resonating with Trump's sentiments, boosting the sales of both Bitcoin and gold. This parallel surge in Bitcoin and gold underscores a growing perception of Bitcoin as a store of value, with some analysts suggesting a potential “regime shift” as the cryptocurrency decouples from its traditional correlation with tech stocks.