In a striking divergence from traditional market trends, Bitcoin and a range of other cryptocurrencies experienced a notable surge on Monday, coinciding with a downturn in major U.S. stock indices. Bitcoin, the flagship digital asset, briefly reached its highest valuation since President Donald Trump’s announcement of reciprocal tariffs, hinting at the potential for further upward momentum.
This bullish movement in the crypto sphere occurred against a backdrop of escalating trade tensions between the U.S. and China, coupled with President Trump’s renewed verbal assaults on Federal Reserve Chair Jerome Powell. Chinese officials issued stern warnings to nations negotiating with the White House, cautioning them about potential retaliatory tariffs from Beijing should any agreements harm their interests. Simultaneously, President Trump accused Powell of politically motivated actions, further unsettling market sentiment.
Adding to the market’s volatility, the dollar index plummeted to a three-year low. This weakening dollar, coupled with widespread uncertainty, has bolstered the appeal of cryptocurrencies and other alternative assets such as gold, which are often perceived as safe havens during periods of economic instability.
Bitcoin’s price surged by over 4%, surpassing the $88,300 mark, according to CoinDesk data. This peak represents the highest intraday level since April 3, the day following the administration’s tariff announcement, when it reached $88,459.24. Despite this recent surge, Bitcoin remains nearly 20% below its all-time high of just under $110,000, attained in mid-January shortly before President Trump’s inauguration.
Contrary to the predictions of many crypto experts who anticipated a Bitcoin rally fueled by favorable Trump policies, the digital asset, along with other cryptocurrencies, has largely mirrored the downward trajectory of stocks and other riskier assets.
However, a potential Bitcoin resurgence may be on the horizon. The cryptocurrency has been confined to a trading range between $75,000 and $90,000. Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report, suggests that a decisive break above the $90,000 threshold could trigger a significant breakout.
Furthermore, some analysts posit that President Trump’s escalating criticism of Federal Reserve Chair Powell may be indirectly benefiting Bitcoin. Crypto investors may be anticipating lower interest rates under a potentially more dovish future Fed chair. Cantor analyst Brett Knoblauch, in a recent report, noted that “If Trump were to be successful in removing Powell, and putting in place a more ‘dovish’ chairman, this could be viewed as a positive for cryptocurrencies as Bitcoin and alt coins have historically done better in lower interest rate environments.”
Alongside Bitcoin, other prominent cryptocurrencies also experienced gains on Monday. XRP, Ether, and Solana all saw increases of approximately 2%.
In other developments within the crypto industry, a consortium of crypto companies, including Circle and BitGo, are reportedly planning to pursue bank charters or licenses, according to a Wall Street Journal report citing individuals familiar with the matter. While Circle and BitGo declined to comment, this move suggests a growing interest among crypto firms in integrating more closely with the traditional banking system.
These developments could potentially pave the way for greater mainstream adoption of cryptocurrencies. Crypto exchange Coinbase is also exploring licensing options, according to the same report.
Disclaimer: Please note that the content provided herein is intended solely for the purpose of broadening general understanding and offering general information. It should not be construed as financial advice. Trading in cryptocurrencies involves significant risk and is not suitable for all investors. Past performance is not indicative of future results. You are strongly encouraged to seek guidance from qualified financial advisors tailored to your specific circumstances and risk tolerance before making any investment decisions. By engaging with this material, you acknowledge and agree to the terms of this disclaimer.
