Bitcoin Surpassed 87,000 Dollars Again: Here are the Reasons Behind the Rise! - Coin Bulletin

Bitcoin rose to $87,200 as the dollar fell to its lowest level in three years, while gold prices hit a record high. Trump’s plans to remove Federal Reserve Chairman Jerome Powell have stirred the markets.

The decline of the US Dollar to its lowest levels in three years led to a significant jump in Bitcoin (BTC), which surpassed 87,200 dollars. The weakness of the Dollar directed investors towards riskier assets, and the prices of precious metals like gold also reached record levels.

According to the prominent development, President Donald Trump’s efforts to remove the current Federal Reserve Chairman Jerome Powell led investors to turn to dollar sales. The dollar index (DXY) fell to 98.5 with this news, marking its lowest level in three years. The weakness of the dollar increased the demand for cryptocurrencies like Bitcoin, while gold has also seen an increase of 28 percent since the beginning of the year.

Among the main reasons for the observed changes in the market are Trump’s support for the dismissal of Powell and the statements made by the Director of the Presidential Economic Council, Kevin Hassett, regarding this issue. Hassett’s comments encouraged investors to buy against the dollar and led to significant increases in the prices of Bitcoin and gold.

10x Research founder Markus Thielen stated in his assessment regarding the topic that the rise in Bitcoin was essentially triggered by the sharp decline in the US Dollar and the 2% increase in gold prices. Thielen said, “The rise of Bitcoin to 87,000 dollars can be explained by the decline of the dollar due to Trump’s attempt to dismiss Fed Chairman Powell and the rise of gold.”

The weakening of the Dollar has raised the prices of Bitcoin and gold

The weakening of the Dollar has increased the appetite for risk in financial markets. Hedge funds have been buying against the Dollar, especially with Euro, Yen, and Australian Dollar, pulling the Dollar index down to 98.5. This situation has allowed Bitcoin to surpass the 87,000 dollar level. Gold also showed a significant increase during this process, rising to 3,382 dollars per ounce.

Following Trump’s call to expedite the dismissal of Powell in his statements on the Truth Social platform, the sale of dollar accelerated. Trump also stated that he aimed to stimulate the economy by calling for lower interest rates. Chicago Fed President Austan Goolsbee noted that Trump’s dismissal of Powell would undermine the credibility of the Fed.

These developments, especially creating significant pressure on the US Dollar, have created a positive environment for Bitcoin (BTC) investors. Today, the decline of the dollar and the rise of gold have increased investors’ interest in risky assets and pushed Bitcoin back to the $87,000 level.