Bitcoin’s price surged to $88,000 on April 22, 2025, the highest level since late March. This happened at the same time the U.S. dollar fell to a three-year low due to political tension and issues with the Federal Reserve’s independence.
Liquidations and Market Dynamics
In the past 24 hours, we saw over $97 million in Bitcoin short positions liquidated, which pushed the crypto upward. Total liquidations across all crypto assets approached $270 million, with Ethereum shorts at over $264k.
Although Bitcoin price went up by over 1%, major players in the crypto space like Ethereum, Cardano (ADA), and Solana (SOL) saw drops of up to 3% as investors took profits.
Bitcoin’s Role Amid Dollar Plunge and Political Issues
The U.S. dollar’s drop was a result of political tension that saw President Donald Trump step up his criticism of Fed Chair Jerome Powell. This, in turn, put into question the Fed’s autonomy, which caused the U.S. Dollar Index to fall by more than 1%.
Bitcoin’s rise is a sign of it growing as a safe haven asset in times of economic uncertainty. We see that Bitcoin does well when traditional markets are volatile. Additionally, Gold, which is a traditional safe-haven asset, also hit an all-time high of $3,494 per ounce.
Summary of Market Performance
As of the latest data, Bitcoin’s market cap hit $88,376.84 while Ethereum traded at $1,616.78, down 1.77%. Solana’s price fell 0.29% to land at $140.01. We also saw mid-cap tokens like Kaspa (KAS) and Polygon (POL) gain up to 9%, reflecting investor interest in smaller cryptos. Mid-cap tokens like Kaspa (KAS) and Polygon (POL) gained up to 9%, reflecting investor interest in smaller cryptos.
