By Key Points
- Trump Powell Bitcoin Clash Sends Dollar Crashing and BTC to $87K
- US Dollar Index (DXY) drops to a 3-year low at 98.23
- Trump’s push to fire Fed Chair Jerome Powell shakes markets
- Bitcoin spikes to $87K, fueled by fears of inflation
- Investors see BTC as hedge against political and economic uncertainty
In a dramatic move shaking both Wall Street and the crypto space, President Donald Trump’s effort to remove Federal Reserve Chair Jerome Powell has sent the US Dollar Index (DXY) plunging. As the DXY dipped to 98.2—a three-year low—the effects rippled across financial markets. Bitcoin, on the other hand, surged past $87,000, signaling growing investor interest in crypto as a haven.
DXY Performance. Source: TradingView – Techtoken
National Economic Council Director Kevin Hassett confirmed that Trump’s team is seriously considering Powell’s removal. This comes after growing accusations that the Fed’s actions under Powell have been politically charged—tightening monetary policy after Trump’s election win, then easing it near election time.
Hassett stated, “The president and his team will continue to study that matter,” hinting at what many saw as a serious blow to the Fed’s independence.
Economist Peter Schiff weighed in, pointing to a rising gold price and a falling dollar as symptoms of broader economic unease. Schiff noted, “The dollar index is below 98.5, a new three-year low. This is getting serious.”
Trump, meanwhile, has openly called Powell “always too late and wrong,” contrasting him with the European Central Bank, which has now cut interest rates seven times in response to inflation. With the Fed holding firm, Trump believes it’s harming America’s recovery—and crypto investors appear to agree.
Gold is up over $50, hitting a record high of $3,380. The euro is above $1.15. The dollar has also fallen below 141 Japanese yen and .81 Swiss francs (a new 14-year low, just 3% above a record low.) The dollar Index is below 98.5, a new three-year low. This is getting serious.
— Peter Schiff (@PeterSchiff) April 21, 2025
Bitcoin Breaks Out as Dollar Wobbles
Bitcoin’s latest surge to $87,586—a 3.5% jump in just one day—isn’t just about charts. It’s about trust. As the dollar weakens, crypto is stepping in to fill the gap. The political pressure surrounding Powell and the uncertainty around the Fed’s future actions have driven investors to view Bitcoin as a hedge.
“USD weakness is driving the rally in crypto,” said Sean McNulty, Derivatives Trading Lead at FalconX.
Bitcoin Price Performance. Source: TradingView – Techtoken
This aligns with recent market trends, where decentralized assets like Bitcoin and Ethereum rally during fiat currency instability. The sharp BTC upswing highlights a bigger shift in investor mindset: a preference for scarce, borderless digital assets over politically influenced fiat currencies.
And Bitcoin isn’t the only digital asset making moves. Institutional interest in BTC is rising globally, as seen in Metaplanet’s growing Bitcoin holdings. Meanwhile, Ethereum alternatives like Solana are gaining traction in the staking space, helping diversify the crypto economy even further.
What This Means for Crypto and the Web3 Ecosystem
The uncertainty around Powell’s position and the dollar’s fall is doing more than just lifting Bitcoin. It’s driving attention back to the entire crypto and Web3 ecosystem.
In recent weeks, new narratives have emerged around decentralized finance, NFTs, and staking. Aptos recently cut staking rewards, which has spurred debate about long-term token value. At the same time, NFT projects like Bunker are gaining momentum by leaning into digital identity and metaverse storytelling, even as broader market conditions remain volatile.
But not everything is going smoothly. On Ethereum Layer-2 network Base, Jesse Pollak’s controversial art post has drawn backlash, showing how easily public sentiment can swing in Web3. Still, as traditional financial systems falter under political pressure, more people are exploring alternative systems of ownership, investment, and expression.
This shift is especially important as centralized systems come under fire. With Trump taking aim at Powell and the Federal Reserve, decentralized networks offer a different kind of safety—one where code replaces committees.
The weakening dollar, combined with political instability, may prove to be the fuel crypto needs to enter its next bull phase. While Bitcoin is leading the charge, the broader ecosystem—staking platforms, NFTs, and DeFi—is quietly building momentum behind the scenes.
What's your reaction?
