Bitcoin rebounds from US Tariff slump amid weakening dollar – Times of India-OxBig News Network

Bitcoin rebounded, reaching its peak level since Trump’s “Liberation Day” tariff declarations, whilst the dollar weakened due to growing concerns about the US president’s attempts to dismiss Federal Reserve Chairman Jerome Powell.
The premier cryptocurrency‘s value increased approximately 3 per cent to exceed $87,600 on Monday morning in Singapore, as Bloomberg’s data indicated. This recovery nearly reversed the decline experienced following Trump’s April 2 reciprocal tariff announcement, which had caused widespread market disruption.
The upward movement occurred alongside declining dollar values and US stock-index futures on Monday, following presidential criticism of the Federal Reserve that sparked worries about its autonomy. The dollar index fell to its lowest since January 2024 after National Economic Council Director Kevin Hassett revealed Trump’s investigation into his authority to dismiss Powell.
Bitcoin’s upward trend coincided with gold’s advancement to a new record, demonstrating investors’ preference for assets traditionally considered stable and inflation-resistant.
“USD weakness is driving the rally in crypto,” said Sean McNulty, derivatives trading lead of APAC at digital-asset prime brokerage FalconX. He noted that “thin holiday liquidity” in crypto markets “is causing the move to be exaggerated.”
This comes after billionaire and co-chief investment officer of the world’s largest hedge fund, Bridgewater Associates, Ray Dalio cautioned about an impending US financial crisis and recession potentially more severe than 2008, White House officials have acknowledged Trump’s consideration of dismissing Federal Reserve Chair Jerome Powell, an action that could precipitate an “apocalyptic scenario” for financial markets.“The president and his team will continue to study that matter,” Kevin Hassett, Trump’s economic adviser, told reporters at the White House when asked if firing the Fed chair was an option and if Trump has the authority to remove Powell, as quoted by Forbes in a recent report.
This week, Trump had expressed his impatience on Truth Social, stating that “Powell’s termination cannot come fast enough” following Powell’s announcement to maintain current interest rates amid uncertainty surrounding Trump’s tariff policies.
Last month, Democratic Senator Elizabeth Warren highlighted Trump’s potential move to dismiss Powell, cautioning that “nobody is safe.”
Trump’s widespread implementation of trade tariffs has disrupted established international trade patterns, creating market uncertainty and causing investors to withdraw from high-risk assets including cryptocurrencies.