Bitcoin rallied to its highest level since Donald Trump’s “Liberation Day” tariff announcements as the dollar slumped amid renewed fears over the US president’s efforts to remove Federal Reserve Chairman Jerome Powell.

The largest cryptocurrency by market value jumped 3.6% to top $87,428 on Monday. That erased most of the losses sustained since Trump’s April 2 reciprocal tariff announcement, which plunged global markets into turmoil.

The rebound comes as the dollar and US stock-index futures fell Monday after the president’s criticism of the Federal Reserve raised concerns over its independence. A gauge of the dollar hit its lowest point since January 2024 after the National Economic Council Director Kevin Hassett said Friday that Trump is studying whether he’s able to fire Powell.

Bitcoin’s recovery coincided with another surge in gold, which climbed to a fresh record, further highlighting investor demand for perceived safe-haven and inflation-hedging assets.

“USD weakness is driving the rally in crypto,” said Sean McNulty, derivatives trading lead of APAC at digital-asset prime brokerage FalconX. He added, however, that “thin holiday liquidity” in crypto markets “is causing the move to be exaggerated.”