Bitcoin and the rest of the crypto market surged at the start of this week as President Trump engaged in a public feud with the Federal Reserve, leading investors to flock to safe haven assets.
The original cryptocurrency is up 3% on Monday, reaching as high as $88,000—a level not seen since Trump’s so-called Liberation Day, in which he announced a sweeping tariff plan that sent financial markets into a historic meltdown. Ethereum and Dogecoin have both gained 3% within the past 24 hours.
“Bitcoin’s move above $87,000 is a clear signal that investors are seeking refuge in decentralized assets amid rising tariffs, inflation concerns, and global economic uncertainty,” Nicholas Roberts-Huntley, CEO of crypto companies Concrete and Glow Finance, tells Fortune.
The crypto market’s gains come amid Trump’s threats to fire Federal Reserve Chair Jerome Powell for not lowering interest rates as quickly as he would like. The feud has raised concerns over the Fed’s traditional status as an independent central bank, unbeholden to political pressures. It’s unlikely the president would have the power to remove Powell, but that could change in the future. On Friday, the White House confirmed that Trump is “studying” whether the president has the power to oust Powell before his term is up in 2026.
And while the crypto market is enjoying a relief rally, the traditional stock market has continued to slide. While the S&P 500 and the Dow Jones made slight gains from this month’s earlier lows, the indexes are both down 3% on Monday.
And Trump’s public comments about Powell seem to have further dented the value of the U.S. dollar. The currency has already fallen significantly since Trump’s inauguration in January, and on Monday, it fell to its lowest value since 2022 when compared with foreign currencies.
As concerns over tariffs, inflation, and the Fed’s independence loom large, some people are investing in digital currencies because they are detached from any centralized entity, allowing them to fluctuate independent of the stock market.
Youwei Yang, chief economist at Bitcoin mining company BIT Mining, told Fortune that while Bitcoin moves in tandem with equities in the short term, it can serve as a haven from geopolitical pressures in the long term.
“In the early stages of crises, it often behaves like a risk asset—similar to tech stocks—falling sharply amid panic,” he said. “Yet as markets stabilize and investors reassess, it can exhibit characteristics of a safe haven asset, akin to gold.”