Bitcoin rebounds as the US dollar weakens and Trump feuds with Fed Chair Jerome Powell

Bitcoin and the rest of the crypto market surged at the start of this week as President Trump engaged in a Ethereum and Dogecoin have both gained 3% within the last 24 hours.

“Bitcoin’s move above $87,000 is a clear signal that investors are seeking refuge in decentralized assets amid rising tariffs, inflation concerns, and global economic uncertainty,” Nicholas Roberts-Huntley, CEO of crypto companies Concrete and Glow Finance, tells Fortune.

The crypto market’s gains come amid Trump’s threats to fire Federal Reserve Chair Jerome Powell for not lowering interest as quickly as he would like. The feud has raised concerns over the Fed’s traditional status as an independent central bank, unbeholden to political pressures. It’s unlikely the president would have the power to do so, but that could change in the future. On Friday, the White House confirmed that Trump is “studying” whether the president has the power to terminate Powell before his term is up in 2026. 

And while the crypto market is enjoying a relief rally, the traditional stock market has continued to slide. While the S&P 500 and the Dow Jones made slight gains from this month’s earlier lows, the indexes are both down 3% on Monday. 

And Trump’s public comments about Powell seem to have further dented the value of the U.S. Dollar. The currency has already fallen significantly since Trump’s inauguration in January, and on Monday, it fell to its lowest value since 2022 when compared to foreign currencies.  

As concerns over tariffs, inflation and the Fed’s independence loom large, some people are investing in digital currencies because they are detached from any centralized entity, allowing them to fluctuate independent from the stock market. 

Youwei Yang, Chief Economist, Bitcoin mining company BIT Mining, told Fortune that while Bitcoin moves in tandem with equities in the short-term, it can serve as a haven from geopolitical pressures in the long-term. 

“In the early stages of crises, it often behaves like a risk asset—similar to tech stocks—falling sharply amid panic,” he said. “Yet as markets stabilize and investors reassess, it can exhibit characteristics of a safe haven asset, akin to gold.”

This story was originally featured on Fortune.com