Bitcoin (BTC) soared above the $88,000 mark on Tuesday, hitting its highest price since late March as investors increasingly sought refuge in the leading cryptocurrency amid rising global uncertainty.
The asset added over 1% in daily gains, extending a rally that began over the weekend. According to CoinGecko data, the bullish momentum contrasted with declines in other top digital assets, including Ether (ETH), Cardano’s ADA, XRP, and Solana (SOL), which dipped by up to 3% a sign of profit-taking across the altcoin market.
Fueling Bitcoin’s momentum was the liquidation of more than $97 million in short positions over the past 24 hours, as reported by CoinGlass. Total crypto liquidations exceeded $180 million during the same period, with Ethereum shorts alone accounting for over $26 million.
The rally coincided with a sharp drop in the U.S. dollar, which fell to a three-year low amid intensifying political pressure on the Federal Reserve. Former President Donald Trump renewed his attacks on Fed Chair Jerome Powell via Truth Social, writing that “Powell’s termination cannot come fast enough,” adding to fears about the central bank’s independence. White House economic advisor Kevin Hassett later confirmed the administration is examining the legal basis for removing Powell.
The U.S. Dollar Index plunged over 1%, touching levels last seen in March 2022, sparking volatility across global financial markets. The Dow Jones Industrial Average, S&P 500, and Nasdaq each tumbled around 3% on Monday morning in response to the political turmoil and macroeconomic uncertainty.
Despite the pullback in major altcoins, some mid-cap tokens showed notable strength. Kaspa (KAS) and Polygon (POL) rose as much as 9%, even in the absence of immediate catalysts highlighting selective optimism among crypto traders.
Ethereum, meanwhile, has entered what analysts are calling a historical “buy zone.” On-chain analyst Ali Martinez noted that ETH is currently trading below the lower band of the MVRV Price Band, a metric often used to spot long-term buying opportunities. ETH remains range-bound between $1,550 and $1,630, with key support at $1,500 and resistance at $1,700, as investors await a clearer direction.
In a rare burst of upside action, XRP surged 4.3% in just two hours on April 21, breaking above its previous resistance level of $2.09 before paring gains.
As uncertainty clouds both traditional markets and central bank policy, Bitcoin’s recent strength is once again casting it in the spotlight as a perceived hedge against fiat instability and geopolitical risk.
