Bitcoin Surges as Trump’s Threat to Fire Powell Weakens Dollar

​Bitcoin just broke above $87,600, reclaiming ground lost since Trump’s April 2 tariff shock—and this time, it’s not about inflation or tech stocks. It’s about the Federal Reserve’s independence.

Crypto rallied as the U.S. dollar fell sharply, following reports that President Trump is exploring ways to remove Fed Chair Jerome Powell. The move raised fears of political interference at the central bank, weakening confidence in the dollar and reigniting interest in alternative stores of value like Bitcoin and gold.

Bitcoin’s 3% jump coincided with a fresh record high in gold, further underscoring the surge in demand for assets seen as hedges against currency risk and policy instability.

“It’s a classic dollar flight,” said Sean McNulty of FalconX. “When the White House threatens the Fed, crypto benefits. But keep in mind, the rally’s also exaggerated by thin holiday liquidity.”

The dollar index hit its lowest point since January 2024 after National Economic Council Director Kevin Hassett confirmed Trump is reviewing his legal options regarding Powell’s dismissal.

This is the second time in recent weeks that Bitcoin has responded directly to the political drama out of D.C.—proving once again that crypto is no longer just tech-driven, it’s macroeconomic mood-sensitive.

​Bottom line: As Trump targets the Fed and the dollar falters, Bitcoin is back in favor—reminding investors that in a world of policy chaos, crypto still wears the crown of digital refuge.