Bitcoin’s price climbed above $88,000 this week, fueled by rising political and financial uncertainty in the United States. This sharp upward movement came after former President Donald Trump hinted at potentially dismissing Federal Reserve Chair Jerome Powell, intensifying concerns over the future of U.S. monetary policy.
The financial markets reacted strongly to the news:
- Equities and the U.S. dollar fell sharply amid investor unease.
- Gold surged to a new all-time high above $3,400 per ounce.
- Bitcoin rallied from below $75,000 earlier in April to breach the $88,000 mark.
Trump’s push for immediate interest rate cuts, citing a retreat in inflation, added to the market’s volatility. His stance has led to speculation about a leadership shake-up at the Federal Reserve, raising fears of further instability in monetary policy.
Bitcoin’s resurgence is being interpreted by many as a shift in investor sentiment toward assets perceived as hedges against institutional risk. The cryptocurrency had recently experienced a pullback from its January high of nearly $110,000, but the unfolding scenario has renewed its appeal as a form of “digital gold”.
Other cryptocurrencies also saw higher trading volumes, though the gains were mainly concentrated in bitcoin. Analysts caution that more market turbulence could lie ahead depending on how the White House handles the Fed situation moving forward.
Overall, Trump’s threat to the Fed’s independence may have rattled traditional markets, but it has simultaneously reinforced bitcoin’s growing role as a hedge against political and economic instability.
Source: Forbes
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