The price of bitcoin (BTC) rose 3% on Monday to above $87,500. The sudden rise appears to coincide with a sharp decline in the US dollar after former President Donald Trump lashed out at the US central bank (Federal Reserve).
Trump lashes out at the Fed: “They don’t understand”
During an interview over the weekend, Trump once again criticized the Federal Reserve. According to him, interest rates are too high and the central bank is unnecessarily putting the brakes on the US economy.
“The Fed doesn’t understand,” Trump said.
These statements immediately put pressure on the dollar. The US currency fell visibly against other currencies, which often has a positive effect on bitcoin. After all, a weaker dollar causes investors to look for alternatives such as gold or crypto.
“Whoever owns the gold makes the rules”
Shortly after his speech, Trump also posted a message on his own social platform, Truth Social. In it, he wrote:
“He who owns the gold makes the rules.”
Many investors and analysts see this as a nod to gold and possibly bitcoin. Both are seen as “hard money”: a safe haven in times of economic uncertainty.
Bitcoin benefits immediately
Bitcoin and gold immediately showed successive increases. The bitcoin price rose by 3% in a matter of hours, peaking at $87,500. This seems to indicate that bitcoin is regaining strength after a quiet week of mainly sideways movements.
According to analysts, this is a sign that macroeconomic developments – such as interest rate expectations and statements by various politicians – are increasingly influencing the crypto market.
“Investors are responding more quickly to political uncertainty,” market analyst Chris Weston told Investing.
What does this mean for investors?
If the central bank decides to lower interest rates, this could cause further increases. In times of uncertainty, people often seek refuge in alternatives such as bitcoin and gold. For now, the price of bitcoin remains stable above $87,000. The crypto market seems to be slowly preparing for a new phase of volatility, driven by (geo)political developments.
