Bitcoin Breaks Above $88,000 as US Dollar, Stocks Tumble Amidst Political Pressure on Fed
Bitcoin (BTC) has crossed $88,000 after gaining over 1% in the past 24 hours. This upward movement reinforces Bitcoin's position as a hedge
Quick overview
- Bitcoin (BTC) has surpassed $88,000, gaining over 1% in the last 24 hours, reinforcing its role as a hedge against economic instability.
- The cryptocurrency's rise contrasts with declines in U.S. stock markets and the dollar, indicating a potential shift in investor sentiment.
- Institutional interest in Bitcoin appears to be recovering, with a notable influx into Bitcoin ETFs after previous outflows.
- Technical indicators suggest continued bullish momentum for Bitcoin, with potential targets of $89,500 and $90,500 if it surpasses $88,800.
Bitcoin (BTC) has crossed $88,000 after gaining over 1% in the past 24 hours. This upward movement reinforces Bitcoin’s position as a hedge against political and economic instability amid rising pressure on the Federal Reserve, even as US stock markets and the US dollar display signs of weakness.
BTC/USD‘s strong performance coincides with rising conflicts between Federal Reserve Chair Jerome Powell and US President Donald Trump. Referring to Powell as “Mr. Too Late” and “a major loser,” Trump has sharpened his criticism of him and demanded faster interest rate cuts despite analysts’ concerns that such actions could drive inflation, particularly in the face of new tariffs impacting global markets.
Divergence from Traditional Markets Signals Shifting Narrative
Bitcoin has maintained an upward trajectory while U.S. equities markets have suffered notable losses—with the S&P 500, Nasdaq, and Dow Jones all declining by about 2.5–3%. Given the past association of cryptocurrencies with tech stocks, this difference is very noteworthy.
Last seen in March 2022, the U.S. Dollar Index (DXY) has likewise dropped to three-year lows around 98. The strength of Bitcoin has coincided with this dollar depreciation, implying the bitcoin might be gaining from investors looking for substitutes for the conventional banking system.
“Among one of the most volatile times for world markets in years, Bitcoin is displaying amazing resilience,” Bitfinex analysts said in a recent market update.
Institutional Interest Shows Signs of Recovery
After weeks of outflows, institutional Bitcoin confidence seems to be returning. Location Last week’s $13.4 million net influx for Bitcoin ETFs stood in stark contrast to the $708 million in withdrawals from the prior week. This change in money flow suggests possible institutional interest in Bitcoin once more as a counter to economic instability.
Bitcoin’s performance in relation to conventional assets will be closely watched for indications of further decoupling and possible establishment as a digital alternative to gold under times of market stress as global markets negotiate the changing trade tensions and political uncertainty surrounding U.S. monetary policy.
BTC/USD Technical Indicators Point to Continued Momentum
On hourly charts, the price behavior of Bitcoin reveals notable optimistic momentum. Following acceptance at $85,000, BTC developed a positive trend line with support close to $87,300. Suggesting ongoing strength in the short run, the bitcoin is trading comfortably above both the $87,500 barrier and the 100-hour Simple Moving Average.
Before consolidating gains, the price lately tested resistance at $88,800. Technical indicators confirm the optimistic view; the Relative Strength Index (RSI) is positioned above the 50 level and the hourly MACD gains pace in the bullish zone. Should Bitcoin surpass the $88,800 barrier, the next targets seem to be $89,500 and maybe $90,500, with additional upside possibility toward $92,000.
Support levels have developed at $88,000, $87,600, and $86,800; more significant support at $85,500 should a more thorough correction emerge.
Significant Short Liquidations Fuel Recent Rally
The current price increase has set off significant derivative market liquidation. A 24-hour period of Bitcoin short position wiping away over $97 million helped to account for about $180 million in total cryptocurrency liquidations. Over $26 million of these liquidations came from Ethereum shorts, underscoring the general influence of Bitcoin’s surge on the larger cryptocurrency market.
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