Bitcoin Surges Above $87,000, Extending Gains as Broader Markets Reopen

The digital asset's move followed three sessions of tight consolidation, coinciding with broad dollar weakness and a record-setting rally in gold.

Bitcoin price extended gains during early Asia trading on Monday, surging above $87,000 as broader markets reopened following a flat session throughout the Easter holiday closure.

The digital asset’s move came after three sessions of tight consolidation, coinciding with broad dollar weakness and a record-setting rally in gold.

BTC/USD rose from around $84,450 to an intraday high of nearly $87,650 within three hours, breaking above a multi-day falling wedge pattern. Bitcoin was trading at nearly $87,640 at the time of publication, according to TradingView data.

The breakout unfolded during low-liquidity conditions in early Asia hours, with the dollar index (DXY) falling to its lowest level since 2021.

This coincided with growing speculation around the potential removal of Federal Reserve Chair Jerome Powell.

As ZeroHedge reported, comments made Friday by National Economic Council Director Kevin Hassett, who stated that “the president and his team will continue to study” options regarding Powell’s position, were cited by traders as a catalyst for the dollar’s decline.

Dollar weakness triggers haven flows

The dollar’s rapid decline, unfolding while several global markets remained closed, drove demand toward both traditional and digital stores of value.

Gold prices rose to an all-time high of $3,391.62 during the same session, registering a 2.4% gain. Per Reuters, the move marked the metal’s most substantial single-day rally in months.

Digital gold in the form of Bitcoin rose in tandem, diverging from recent behavior, when both assets had moved inversely to the 10-year U.S. Treasury note. Notably, bond prices fell Monday; the US10 and CN10 plots on the chart represent bond prices, not yields, implying a concurrent rise in long-dated yields.

The Kobeissi Letter reported,

“The narrative in both Gold and Bitcoin is aligning for the first time in years:

Gold and Bitcoin are telling us that a weaker US Dollar and more uncertainty are on the way.”

The combination of a falling dollar, climbing yields, and soaring gold presents a scenario where Bitcoin is being repriced in light of perceived instability in traditional financial instruments.

As ZeroHedge framed it, the alignment of gold and Bitcoin strength during a period of fiat stress may reflect “a regime shift” where digital assets are increasingly treated as monetary hedges.

Broader market divergence

Equity markets opened weaker despite haven strength. The S&P 500 futures fell 1.54% in Monday’s early session, erasing late-week gains. Oil markets also declined, with WTI crude down more than 3%, trading close to the session low at around $62.83.

This divergence between traditional risk assets and alternative stores of value mirrors conditions observed during other periods of monetary uncertainty.

Gold and Bitcoin rising together while bond prices fall and equity indices slip suggests positioning away from rate-sensitive assets and into instruments perceived as politically insulated.

Per ZeroHedge, the dollar’s descent may not stabilize quickly. If central banks like the Bank of Japan and European Central Bank respond with easing measures to counter their own currency strength, further dollar pressure could ensue.

In such an environment, Bitcoin may continue to decouple from rate-based instruments and track more closely with physical commodities like gold.

Structural implications

The correlation breakdown between Bitcoin and traditional macro proxies poses questions around portfolio allocation and asset classification.

With bond prices and equities sliding while gold and Bitcoin rally, traders may begin to recalibrate how digital assets are categorized in cross-asset frameworks.

This move follows weeks of gradual decorrelation between Bitcoin and the DXY, as observed through 30-day rolling correlation metrics.

Should this continue, Bitcoin will shed its perception as a tech-aligned risk asset and become more of a monetary hedge with characteristics similar to commodities.

The political dimension also plays a role. While previous episodes of Trump-Fed tensions triggered temporary volatility, the current episode features open discussion of potential Federal Reserve leadership changes. This could influence market pricing of future rate decisions and broader monetary policy expectations, both of which have implications for crypto markets.

As trading resumes fully across regions, Bitcoin’s behavior near the $88,400 resistance band will offer further clarity. Sustained strength above this level could attract systematic flows and spur algorithmic buying. Conversely, failure to hold above the breakout zone may expose the asset to return toward mid-range levels.

For now, the asset’s performance in a mixed macro environment, displaying decoupling from equities and fixed income, positions it centrally within post-holiday trading narratives.