Cryptocurrencies They start the week with a majority of increases in the midst of growing political tensions and signs of economic uncertainty. The Bitcoin (BTC) records a gain of almost 3%, quoting near US $ 87,600, according to Binance, while Ethereum (ETH) goes back 0.5% and is positioned around US $ 1,580.
The good mood of the market extends to almost all Altcoins, highlighting the increases in sui (+3.7%), Wrapped Bitcoin (+2.7%) and Dogecoin (+2.3%).
This renewed appetite for risk is given in parallel to a weakening of the US dollar. The DXY index, which measures its performance in front of a foreign currency basket, has fallen to levels not seen since the beginning of 2022, accumulating a 10% loss in the last three months. This setback usually generates more lax financial conditions, which favors alternative assets such as gold and cryptocurrencies. Not for nothing, gold has just marked another historical record by exceeding $ 3,400 per ounce.
According to The Kobeissi Letter, Gold and Bitcoin seem to move in unison for the first time in years. “Both assets are reacting to the growing weakness of the dollar, which reflects a scenario of greater economic uncertainty,” they said in the social network X.
Behind this volatile context, the renewed rumors about a possible attempt by Donald Trump are positioned, again in campaign, to remove Jerome Powell from the presidency of the Federal Reserve. Según The Wall Street Journalthe former president has consulted with advisors about the legal viability of forcing Powell’s departure and replacing him with someone more aligned with his economic vision, such as former governor Kevin Warsh.
Powell’s possible output
The relationship between Trump and Powell has been historically tensemarked by public reproaches around the policy of interest rates. In his social truth platform, Trump did not have: “Powell, which they call ‘too late’, was wrong again. With inflation by lowering and USA. Benefiting from the tariffs, it should have already reduced the types, as the ECB did.”
From the Fed, the answers were swift. Powell reaffirmed that the agency will act independently in the face of any political pressure, while Austen Goolsbee, president of the Chicago Fed, warned that trying to dismiss it would be a severe blow to the credibility of the Central Bank.
In this rarefied environment, economic data does not help either. The manufacturing index of the Fed of Philadelphia fell to its lowest level in two years, while the prices paid by the producers increased, fanning the fear of a possible stagflation promoted by the protectionist policies of the current administration.
For Javier Molina, Anoro analyst, the market in general crosses a moment of fragility. “There is no collapse, but slow erosion. Volatility is high, liquidity is low, and feeling deteriorates,” he explains. In the case of Bitcoin, he ensures that the current impulse lacks firm conviction: “The technical structure has not yet changed. To talk about a real reversal, we should see a clear breakdown above $ 88,000.”
Despite the rebound from recent minimums around $ 76,000, Molina believes that institutional support is still weak. “The flows to the ETF show sporadic inputs, but not a sustained demand,” he concludes.
Thus, while investors seek refuge in hard assets, cryptocurrencies seem to return to the center of the scene, driven not only by technical foundations, but by an increasingly unpredictable political climate.
Source: Ambito
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