Bitcoin (BTC) surged past $88,000 on Tuesday, hitting its highest level since late March and extending a steady rally that began over the weekend. The world’s largest cryptocurrency gained more than 1% on the day, defying a broader downturn in the digital asset market.
While Bitcoin climbed, several other major cryptocurrencies—including Ethereum (ETH), Cardano (ADA), XRP, and Solana (SOL)—saw declines of up to 3%, signaling potential profit-taking, according to CoinGecko data.
The latest upswing underscores Bitcoin’s perception as a safe-haven asset amid growing macroeconomic uncertainty. Contributing to the momentum, more than $97 million in Bitcoin short positions were liquidated in the past 24 hours, according to CoinGlass, adding further fuel to the rally. Total crypto liquidations topped $180 million, with Ethereum shorts accounting for over $26 million.
Bitcoin’s gains came as the U.S. dollar plunged to a three-year low, driven by mounting political pressure on the Federal Reserve. Former President Donald Trump intensified criticism of Fed Chair Jerome Powell, declaring on Truth Social that “Powell’s termination cannot come fast enough.” White House economic advisor Kevin Hassett confirmed that the administration is reviewing the legality of removing Powell—a move that has rattled markets and raised alarms over the Fed’s independence.
The U.S. Dollar Index fell more than 1% to its lowest point since March 2022, further contributing to Bitcoin’s appeal as an inflation hedge.
Meanwhile, mid-cap tokens showed surprising strength. Kaspa (KAS) and Polygon (POL) led the pack with gains of up to 9%, despite the lack of clear catalysts.
Ethereum also attracted attention from analysts. According to crypto analyst Ali Martinez, ETH has entered a historical “buy zone,” trading below the lower MVRV Price Band—an area that has previously signaled strong accumulation opportunities. ETH remains in a tight consolidation range between $1,550 and $1,630, with key support at $1,500 and resistance near $1,700, as investors await a breakout.
Elsewhere in the market, XRP briefly broke out on April 21, spiking 4.3% in just two hours to breach resistance at $2.09.
Traditional markets weren’t immune to the broader turmoil. The Dow Jones Industrial Average, S&P 500, and Nasdaq all slid around 3% Monday morning in New York, with analysts citing fears over the Fed’s autonomy and escalating political interference as primary drivers of investor anxiety.
