Bitcoin Reclaims $87,000 as the U.S Dollar Drops to the Lowest Level Since 2022

Reports of U.S president Donald Trump considering the removal of the Federal Reserve Chair, Jerome Powell, have had a significant effect on the price of Bitcoin and the U.S Dollar performance. Bitcoin has reclaimed the $87,000 price level while the U.S Dollar (DXY) has dipped to three-year lows to below 100

BTC which faced downward pressure since the start of April, now seems to be recovering the previous losses. The $87,000 price level is crucial for determining the price performance moving forward

BTC Surges to Pre-Liberation Day Highs

In its performance on Monday April. 21, 2025, Bitcoin has managed to reach above the $87,000 price level. As per the daily chart on TradingView as of the time of this writing, BTC was trading at $87,2858. This price level was last achieved at the end of March

Source: TradingViewAchieving this price level is crucial for BTC as it signifies the renewed confidence from investors. In fact, according to recent reports, MicroStrategy which is well known for institutional adoption of Bitcoin, recently purchased 6,556 BTC worth $555 million

With renewed interest, BTC could continue in an upward price movement if it manages to hold the $87,000 level. However, the price faces resistance at the $89,938 price level. A breach of this level could see the price of BTC climb above $90,000 with the next resistance at $94,338

If BTC fails to hold the $87,000 level, the price could retrace. But, the support level lies around the $84,472 price level. If this level is breached, sellers might gain control of the market pushing the price of Bitcoin lower. The next support level is around $79,586 which is crucial to prevent a market crash

DXY Drops Below 100 as Powell’s Removal Heightens Pressure

While BTC is flourishing amidst the reports of the removal of Jerome Powell, the U.S Dollar is facing negative pressure from the same. Notably, the US Dollar Index has dipped to March 2022 lows. As of this writing, the US Dollar Index currently sits at 97.787 as per data on TradingView

Source: TradingViewThe recent dip in the DXY is majorly fueled by investors losing confidence in the dollar. With Trump planning the potential removal of Jerome Powell, this has dampened the trust in the dollar. Additionally, market participants are concerned about the politicization of the US monetary policy and the credibility of the Federal Reserve

Trump has blamed Powell for being “too late” to act on the interest rate cuts. “Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now,” Trump shared on Truth Social on April 17. He further added that “Powell’s termination cannot come fast enough” expressing his discontentment with the Fed Chair

Powell’s Firing to Impact Crypto Positively

If Powell is removed from his position as the Fed Chair, this move could affect the crypto market positively. This is because the crypto market participants expect that Trump will manage to persuade the Federal Reserve to cut interest rates. Notably, Bitcoin has already expressed potential for a bullish rally fueled by the reports

Additionally, the U.S dollar usually weakens following an interest rate cut. Nonetheless, while the crypto market is in celebratory mode, it is crucial for the market to monitor what happens next. Furthermore, there are impending broader economic consequences to watch out for if Powell is fired