Bitcoin surged past $88,000 on Monday before settling around $86,800, marking its highest price since late March.
At the same time, traditional financial markets took a hit. The Dow Jones Industrial Average, S&P 500, and Nasdaq all fell around 3% on Monday morning in New York. Analysts cited investor uncertainty about the Fed’s independence and broader macroeconomic instability as key drivers behind the sell-off.
Despite the pressure on equities, Bitcoin rose as investors turned to assets perceived as safer stores of value. Gold, another such asset, also continued its rise, trading above $3,420 per ounce—its highest price ever. While cryptocurrencies typically move in tandem with equities, Bitcoin’s performance on Monday suggested a potential shift, behaving more like a hedge against economic and political instability.
Ethereum, the second-largest digital asset, traded flat at around $1,624. It has fallen more than 20% in the last month. Dogecoin gained roughly 1.9%, XRP rose 0.15%, and MATIC jumped nearly 5%. Solana dipped slightly, losing about 0.5%. The TRUMP token also recorded gains of over 2%.
The uptick in Bitcoin’s value followed recent developments in U.S. trade policy. Trump said “big progress” had been made after talks with a Japanese delegation, while reports indicated China may be willing to resume trade negotiations if treated with more respect. Earlier this month, Trump had announced a new round of tariffs, contributing to earlier market stress.
While markets remain volatile, the sharp rise in Bitcoin and gold reflects investor caution and a retreat from the U.S. dollar amid political and economic uncertainty.
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