For the first time since late March, Bitcoin has surged past the $87,000 mark, posting a daily gain of 3.3%. Other major cryptocurrencies like Ethereum, XRP, and several altcoins are also in the green, despite ongoing macroeconomic turbulence casting a shadow over global markets.
Meanwhile, the US Dollar Index (DXY) has plunged to a three-year low. The sharp decline comes as former US President Donald Trump intensifies his efforts to remove Federal Reserve Chair Jerome Powell from office. The looming threat to the central bank’s independence is prompting investors to move away from the dollar, seeking safer or more decentralized assets like cryptocurrencies and gold.
In a fresh post on his Truth Social account, Trump – often dubbed the “Crypto President” by his supporters – called on the Federal Reserve to implement more interest rate cuts. He added that Powell’s dismissal “cannot come soon enough,” signaling his growing impatience with current monetary policy. In an unusual twist, Trump praised the European Central Bank (ECB) for its ongoing rate-cutting strategy.
“The ECB is expected to lower rates for the seventh time, while ‘Too Late’ Jerome Powell from the Fed, who’s always TOO LATE AND WRONG, issued yet another typical ‘mess’ of a report yesterday,” Trump wrote.
This wave of market uncertainty, however, is not entirely negative – especially for crypto and gold enthusiasts. Gold is currently trading just shy of the $3,400 mark, continuing its impressive rally. As traditional fiat currencies come under pressure, precious metals and decentralized assets are gaining ground.
Euro-based investors, however, are seeing only limited benefits from the crypto rebound. While the EUR/USD rate has climbed to 1.15, Bitcoin priced in euros has only gained 1.6%, currently standing at €75,800.
The recent optimism can be partly attributed to reduced fears surrounding trade tensions and macroeconomic instability. Sentiment in the crypto sector is visibly improving, with the Fear & Greed Index now at 39, inching closer to the neutral zone.
Commenting on the broader appeal of Bitcoin in volatile times, MicroStrategy’s Michael Saylor took to X (formerly Twitter) to highlight the cryptocurrency’s resilience: “Bitcoin has no counterparty risk. No company. No country. No creditor. No currency. No competitor. No culture. Not even chaos.”
The crypto market appears to be regaining its momentum as investors reconsider their strategies in light of political and monetary developments. With Bitcoin leading the charge and gold not far behind, decentralized assets are once again proving their worth in uncertain times.
