Bitcoin’s price surged to its highest point since late March, surpassing $88,000 on Tuesday, marking a continued upward trend that began on Sunday with over a 1% increase.
In contrast, other major cryptocurrencies like Ether, Cardano’s ADA, XRP, and Solana’s SOL saw declines of up to 3%, suggesting some investors were taking profits, according to CoinGecko data.
This price surge highlights Bitcoin’s perceived safety during uncertain economic times. Data from CoinGlass showed that over the past day, more than $97 million in Bitcoin short positions were liquidated, fueling its upward movement. Total liquidations across all cryptocurrencies neared $180 million, with Ethereum shorts accounting for over $26 million.
Bitcoin’s rally occurred alongside a significant drop in the U.S. dollar, which reached a three-year low due to growing concerns about political interference with the Federal Reserve.
Meanwhile, smaller cryptocurrencies like Kaspa’s KAS and Polygon’s POL saw gains of as much as 9%, even without any clear immediate reasons.
According to analyst Ali Martinez, Ethereum has entered a historically favorable “buy zone,” as its trading price fell below the lower MVRV Price Band, a metric that has historically indicated strong buying opportunities. Currently, ETH is trading within a narrow range of $1,550 to $1,630, with key support at $1,500 and resistance at $1,700, as investors await a clear direction amid global economic pressures.
XRP experienced a notable breakout on April 21, jumping 4.3% in just two hours and breaking through previous resistance at $2.09.
The decline of the U.S. dollar was triggered by increasing political tensions surrounding the Federal Reserve. President Donald Trump intensified his criticism of Fed Chair Jerome Powell, stating on Truth Social that Powell’s removal “cannot come fast enough.” Trump has been urging the central bank to lower interest rates, a move that has sparked concerns about the Fed’s independence. White House economic advisor Kevin Hassett confirmed that the administration is reviewing the legality of removing Powell. These developments caused significant market volatility, causing the U.S. Dollar Index to fall by over 1% to levels last seen in March 2022.
Traditional financial markets also felt the impact of this political uncertainty. The Dow Jones Industrial Average, S&P 500, and Nasdaq all experienced declines of approximately 3% on Monday morning in New York. Analysts attributed this sell-off to investor unease regarding the Fed’s autonomy and broader macroeconomic instability.