Wall Street rallies and recovers Monday’s loss as the dollar and US bond markets steady

Wall Street rallies and recovers Monday’s loss as the dollar and US bond markets steady

Wall Street experienced a significant recovery on Monday, April 23, 2025, as the dollar and US bond markets remained steady. The day's events were marked by a rebound in Bitcoin, which reached its highest level since the Trump administration's tariff declarations. This surge was driven by a weakening dollar and growing concerns about the potential dismissal of Federal Reserve Chairman Jerome Powell.

Bitcoin's value increased by approximately 3% to exceed $87,600 on Monday morning in Singapore, as reported by Bloomberg. This recovery nearly reversed the decline experienced following Trump's April 2024 reciprocal tariff announcement, which had caused widespread market disruption. The upward movement occurred alongside declining dollar values and US stock-index futures, following presidential criticism of the Federal Reserve that sparked worries about its autonomy.

The dollar index fell to its lowest level since January 2024 after National Economic Council Director Kevin Hassett revealed Trump's investigation into his authority to dismiss Powell. This investigation has raised concerns about the potential for an "apocalyptic scenario" in financial markets, as cautioned by billionaire Ray Dalio of Bridgewater Associates.

The recovery in Bitcoin coincided with gold's advancement to a new record, demonstrating investors' preference for assets traditionally considered stable and inflation-resistant. Sean McNulty, derivatives trading lead of APAC at digital-asset prime brokerage FalconX, attributed the exaggerated move to thin holiday liquidity in crypto markets.

Market analysts have noted that the dollar's weakness is a significant factor driving the rally in cryptocurrencies. This week, Trump had expressed his impatience on Truth Social, stating that "Powell's termination cannot come fast enough" following Powell's announcement to maintain current interest rates amid uncertainty surrounding Trump's tariff policies.

The widespread implementation of trade tariffs by the Trump administration has disrupted established international trade patterns, creating market uncertainty and causing investors to withdraw from high-risk assets including cryptocurrencies. However, the recent recovery in Bitcoin and the broader market suggests that investors are cautiously optimistic about the future.

References:
[1] https://timesofindia.indiatimes.com/business/international-business/bitcoin-rebounds-from-us-tariff-slump-amid-weakening-dollar/articleshow/120472752.cms