The post Bitcoin rallies above $87k while dollar weakens on Powell speculation after long weekend appeared on BitcoinEthereumNews.com.

Bitcoin surged above $87,000 during early Asia trading on Monday, extending gains as broader markets reopened after trading flat throughout the Easter holiday closure. The digital asset’s move followed three sessions of tight consolidation, coinciding with broad dollar weakness and a record-setting rally in gold. BTC/USD climbed from approximately $84,450 to an intraday high near $87,650 in under three hours, breaking above a multi-day falling wedge pattern. According to TradingView data, Bitcoin was trading at nearly $87,640 at the time of publication. Bitcoin surges amid dollar weakness (Source: TradingView) The breakout unfolded during low-liquidity conditions in early Asia hours, with the dollar index (DXY) falling to its lowest level since 2021. This coincided with growing speculation around the potential removal of Federal Reserve Chair Jerome Powell. As ZeroHedge reported, comments made Friday by National Economic Council Director Kevin Hassett, who stated that “the president and his team will continue to study” options regarding Powell’s position, were cited by traders as a catalyst for the dollar’s decline. Dollar weakness triggers haven flows. The dollar’s rapid decline, occurring while several global markets remained closed, pushed demand toward traditional and digital stores of value. Gold prices surged to an all-time high of $3,391.62 during the same session, registering a 2.4% gain. Per Reuters, the move marked the metal’s most substantial single-day rally in months. Digital gold in the form of Bitcoin rose in tandem, diverging from recent behavior, when both assets had moved inversely to the 10-year U.S. Treasury note. Notably, bond prices fell Monday; the US10 and CN10 plots on the chart represent bond prices, not yields, implying a concurrent rise in long-dated yields. The Kobeissi Letter reported, “The narrative in both Gold and Bitcoin is aligning for the first time in years: Gold and Bitcoin are telling us that a weaker US…

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Filed under: News - @ April 21, 2025 9:23 am