Bitcoin surges to $87,200 as dollar index hits three-year low amid concerns over Federal Reserve’s monetary policy and potential removal of Chairman Jerome Powell.
The dollar index has hit a three-year low, driving the value of major currencies up against it. This move has been attributed to reports that President Donald Trump is exploring ways to remove Federal Reserve Chairman Jerome Powell.
Bitcoin (BTC) has surged over 2% to reach $87,200, marking a bullish resolution to the recent consolidation between $83,000 and $87,000. This move has outshined that of major alternative cryptocurrencies such as XRP, Ethereum’s ether, and Cardano’s ADA, which have also risen by over 1%. The rally in BTC is seen as a response to the perceived threat to Fed independence, with traders selling the dollar against major currencies.
Bitcoin is a decentralized digital currency that allows for peer-to-peer transactions without the need for intermediaries.
It was created in 2009 by an individual or group using the pseudonym Satoshi Nakamoto.
Bitcoin uses cryptography to secure and verify transactions, with a network of computers working together to record all transactions on a public ledger called the blockchain.
As of 2022, there are over 18 million Bitcoins in circulation, with a total market capitalization exceeding $1 trillion.
Gold prices have continued their upward trend, reaching a record high of $3,382 per ounce. This move has been attributed to concerns over the potential removal of Powell from his position as Fed Chairman. The year-to-date gain for gold is now 28%, with futures tied to the S&P 500 and Nasdaq trading 0.5% lower.
Gold is a chemical element with the symbol Au and atomic number 79.
It is a soft, yellow, dense metal with high ductility and conductivity.
Gold is highly valued for its rarity, durability, and resistance to corrosion.
It has been used in various forms throughout history, including coins, jewelry, and electronics.
Gold is also used in dentistry due to its biocompatibility and ability to withstand high temperatures.
The annual global gold production is approximately 2,500 tons.
According to Markus Thielen, founder of 10x Research, 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. The National Economic Council Director Kevin Hassett’s comment on Friday regarding Trump’s intention to remove Powell likely played a role in triggering the selling of the dollar and the upticks in BTC and gold.
Chicago Fed President Austan Goolsbee has warned that a move by Trump to terminate Jerome Powell would undermine the credibility of the Fed. Meanwhile, President Trump posted on Truth Social on Thursday that ‘Powell’s termination cannot come fast enough,’ while reiterating calls for lower interest rates on the following day.
Austan Goolsbee is an American economist, academic, and policy expert.
He served as the Chairman of the Council of Economic Advisers under President Barack Obama from 2010 to 2013.
Goolsbee's research focuses on international trade, taxation, and economic growth.
He has testified before Congress on various economic issues and has written extensively for publications such as The New York Times and The Wall Street Journal.
Goolsbee is currently a professor at the University of Chicago Booth School of Business.
