Markets Jolt as Trump Threatens Powell’s Job — Bitcoin Rockets to $87K, Dollar Unravels

A political bombshell from Washington sent shockwaves through financial markets on Monday, driving Bitcoin to a fresh multi-week high and hammering the U.S. dollar.

Bitcoin (BTC) climbed over 2% to $87,200 — the highest level since early April — as news broke that President Donald Trump is considering removing Federal Reserve Chair Jerome Powell. The report ignited fears over the erosion of the Fed’s independence, prompting a flight from the dollar and into alternative assets like gold and crypto.

While BTC led the charge, major altcoins including Ethereum (ETH), XRP, and Cardano (ADA) also gained, though less aggressively, each rising around 1%.

In currency markets, hedge funds and traders dumped the U.S. dollar en masse, sending the dollar index (DXY) to 98.5, its lowest reading since April 2022. The greenback has now shed 10% over the past three months, a stunning reversal that’s loosened financial conditions and opened the door for renewed risk appetite.

Gold extended its rally with prices soaring to an all-time high of $3,382 per ounce — now up 28% on the year — as investors flocked to hard assets. Meanwhile, U.S. stock futures dipped, with the S&P 500 and Nasdaq both down about 0.5%.

The catalyst for Monday’s volatility was a comment from National Economic Council Director Kevin Hassett, who confirmed Trump is actively exploring ways to oust Powell. The president also posted a scathing message on Truth Social last week, declaring, “Powell’s termination cannot come fast enough.”

“The dollar collapse and surge in Bitcoin and gold are all symptoms of one thing — the market sees political interference at the Fed as a serious threat,” said Markus Thielen, founder of 10x Research. “This could mark a pivotal shift in global risk dynamics.”

Powell recently signaled the Fed would hold steady on rates pending further data, but warned of stagflation risks. In response, Trump renewed his pressure for rate cuts — now paired with an open challenge to the Fed’s leadership.

Chicago Fed President Austan Goolsbee cautioned that removing Powell would deeply undermine the central bank’s credibility and its role in maintaining economic stability.