The crypto market is growing amid news of the Fed chairman’s dismissal

Bitcoin BTC $104,321.11 Bitcoin -0.33% Market capitalization $2.07 trillion VOL. 24 hours $1.85 billion has once again strengthened its position, rising above $ 87,000 amid a fall in the US dollar. The reason for this dynamic was the information about the possible dismissal of the Federal Reserve Chairman. In turn, this caused investors to worry about the independence of the US central bank. In response, markets stepped up purchases of alternative assets, including cryptocurrencies and gold.

On Monday, the main digital currency rose by more than 2%, reaching its highest level in three weeks. Against this backdrop, Ethereum ETH $2,516.36 Bridged Ether (StarkGate) -2.45% Market capitalization $0.22 billion VOL. 24 hours $2.04 billion , XRP XRP $2.38 XRP -3.43% Market capitalization $139.2 billion VOL. 24 hours $0.38 billion , and Cardano ADA $0.81 Cardano -3.61% Market capitalization $29.22 billion VOL. 24 hours $0.1 billion also rose, albeit less rapidly — by about 1%. The main driving force was the general nervousness in traditional markets, which pushed investors to seek assets less dependent on the political decisions of the US government.

The sharp drop in the dollar was caused by concerns about the Fed losing its autonomy. This led to its weakening against major currencies, including the euro, Japanese yen, and Australian dollar. This background created the conditions for a reorientation of investments to the crypto market.

The US dollar index fell to a level last seen in April 2022. In three months, the value of the index decreased by 10%, which is a very significant figure. At the same time, the price of gold increased, setting a new all-time high.

Analysts note that today’s momentum in the cryptocurrency market is driven not only by internal factors, but primarily by political risks in the United States. This situation once again confirms the dependence of global financial trends on events in Washington.