The Bitcoin price has once again seen a significant increase, rising above the 91,000 US dollar mark. This marks the cryptocurrency’s highest level since early April. The trigger for the price movement was political developments in the United States. Within the US government, there have been discussions about removing Jerome Powell as chairman of the Federal Reserve. This debate was fueled by repeated public criticism from President Donald Trump directed at the central bank. The Federal Reserve had so far refused to cut interest rates, a stance that met with disapproval in parts of the administration.
Kevin Hassett, Director of the National Economic Council, stated last week that legal options for Powell’s dismissal were being reviewed. In response, Austan Goolsbee, President of the Chicago Fed, emphasized the importance of political independence for central banks. Analysts also see a connection between the current developments and a weakening US dollar, as well as low trading volumes, which have additionally supported Bitcoin. However, ongoing uncertainty caused by the continuing international trade conflict continues to weigh on risk-prone assets.
Investments in Bitcoin ETFs rose significantly at the start of the week. Institutional investors injected a net total of over 381 million US dollars into the market on Monday. This figure was last reached around three months ago and suggests a return of investors with bullish market expectations. As a result, the Bitcoin price rose again to around 91,400 dollars.
Alongside the developments concerning the Federal Reserve, Trump’s trade policy also caused turmoil. New special tariffs on imports from several countries led to tensions with China and the EU. Although Trump temporarily suspended some measures, he simultaneously increased tariffs on Chinese goods. This erratic policy also had a noticeable impact on US financial markets.
In addition, inflation figures in the US recently dropped more sharply than expected. Overall inflation stood at 2.4 percent in March, while core inflation was at 2.8 percent. This also contributed to the shift in market sentiment. Despite an interim correction, Bitcoin had already stabilized around the 80,000-dollar mark earlier in the month before moving upward again.
