Bitcoin Surges to $88,000 Amid U.S. Dollar Weakness and Market Volatility

Bitcoin (BTC) surged past $88,000 on Tuesday, marking its highest price since late March. This significant rise came as the U.S. dollar experienced a sharp decline, hitting a three-year low amidst growing concerns about political interference in the Federal Reserve. Bitcoin’s rally highlights its growing reputation as a safe-haven asset during times of economic uncertainty.

The surge in Bitcoin’s price was further supported by a wave of liquidations in the cryptocurrency market. Data from CoinGlass revealed that more than $97 million in Bitcoin short positions were liquidated in the past 24 hours, contributing to the upward momentum. Overall, total cryptocurrency liquidations approached $180 million, with Ethereum (ETH) short positions accounting for over $26 million.

While Bitcoin saw a steady 1% rise, other major cryptocurrencies like Ethereum (ETH), Cardano’s ADA, XRP, and Solana’s SOL experienced declines of up to 3%. These declines suggest that some traders may be taking profits, as noted by CoinGecko data. Despite this, mid-cap tokens like Kaspa’s KAS and Polygon’s POL led the gains, rising by up to 9%, although there were no immediate catalysts for this price action.

This latest market movement underscores the volatility in the cryptocurrency space, where Bitcoin continues to attract attention as a safe-haven option amid broader economic uncertainties. The trend also reflects ongoing shifts in investor behavior, with altcoins showing mixed performance in the face of Bitcoin’s dominant rally.

Source: Nairametrics