The price movement coincided with a broader market reaction to growing political tensions in the United States, particularly around the Federal Reserve. A sharp drop in the U.S. dollar—now at its lowest point in three years—appeared to be a contributing factor in Bitcoin’s upward momentum. Analysts suggest that the weakening dollar and uncertainty surrounding central bank policy have prompted investors to seek refuge in digital assets.
While Bitcoin saw modest gains, other major cryptocurrencies were less resilient. Ethereum (ETH), Cardano (ADA), XRP, and Solana (SOL) all recorded losses of up to 3%, according to CoinGecko data. This divergence suggests a wave of profit-taking among altcoin holders, even as Bitcoin continued to attract fresh interest.
Supporting Bitcoin’s price surge was a wave of liquidations in the futures market. According to CoinGlass, over $97 million in Bitcoin short positions were closed out in the past 24 hours, amplifying buying pressure. Across all cryptocurrencies, total liquidations approached $180 million, with Ethereum accounting for more than $26 million in shorts.
Amid the market churn, some mid-cap tokens such as Kaspa (KAS) and Polygon (POL) bucked the trend, posting gains of up to 9% despite a lack of clear catalysts. Their performance points to ongoing investor appetite for selective risk in a turbulent environment.
Ethereum, meanwhile, has entered what some analysts describe as a potential “buy zone.” Ali Martinez, a crypto market strategist, noted that ETH is now trading below the lower boundary of the MVRV Price Band—a historical signal that has previously preceded strong rallies. ETH remains locked in a tight range between $1,550 and $1,630, with key support near $1,500 and resistance at $1,700.
XRP briefly stood out on April 21, when it surged 4.3% in under two hours, breaking past technical resistance at $2.09. However, it has since retraced some of those gains alongside the broader altcoin market.
The crypto market's recent moves reflect not just internal dynamics but also external pressures from the macroeconomic landscape. Political turbulence in Washington has intensified following renewed criticism from former President Donald Trump toward Federal Reserve Chair Jerome Powell. Writing on Truth Social, Trump stated, “Powell’s termination cannot come fast enough,” fueling speculation over the Fed’s independence.
White House economic advisor Kevin Hassett added fuel to the fire by confirming that the administration is examining the legality of removing Powell. These developments rattled traditional financial markets, with the U.S. Dollar Index falling more than 1% to levels not seen since March 2022.
The uncertainty carried over to equities, as major U.S. indices fell sharply. The Dow Jones Industrial Average, S&P 500, and Nasdaq each declined around 3% on Monday morning, reflecting investor unease about the central bank’s future direction and broader economic stability.
For now, Bitcoin appears to be benefiting from the chaos, attracting attention as a digital alternative in times of political and financial volatility. However, with macroeconomic risks mounting and market volatility rising, analysts caution that the path ahead for crypto—and all asset classes—remains unpredictable.