The cryptocurrency market surged on April 21, 2025, with Bitcoin climbing approximately 3% to over $87,500. Trading data shows Bitcoin reached $87,369 by early morning, nearly erasing losses that followed President Trump’s April 2 tariff announcements.
The rally comes amid significant dollar weakness. The US 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 Federal Reserve Chair Jerome Powell.
This sparked widespread concerns about central bank independence. “USD weakness is driving the rally in crypto,” said Sean McNulty, derivatives trading lead at FalconX.
He added that “thin holiday liquidity in crypto markets is causing the move to be exaggerated.” Trading volumes confirm this assessment, with 2.1 million Bitcoin traded across major exchanges in 24 hours.
The broader cryptocurrency market followed Bitcoin’s upward trajectory. Ethereum gained 2.2% to reach $1,647, while Chainlink jumped 3.8% to $13.56. Litecoin rose 3.2% to $79.12, and XRP increased 2.4% to $2.13.
The standout performer was Decentraland’s MANA token, which surged 12.6% to $0.32. Total cryptocurrency market capitalization increased 1.8% to $2.74 trillion.
Bitcoin Dominance and Market Sentiment
Bitcoin dominance grew, now representing 63.4% of the entire crypto market. Trading volume across all cryptocurrencies reached $187.5 billion, also up 1.8% over the past 24 hours.
Despite price gains, institutional sentiment remains mixed. Bitcoin ETFs continued to experience net outflows, with only the Grayscale Bitcoin Mini Trust recording positive inflows.
Ethereum ETFs showed similar patterns, with BlackRock’s iShares Ethereum Trust being the rare exception with modest inflows. Technical analysts watch key levels that could determine future market direction.
A breakout above $88,000 could trigger further gains, while a drop below $80,500 might signal a trend reversal. Bitcoin briefly touched $88,000 last month but failed to maintain that level.
The crypto rally parallels movements in traditional safe-haven assets. Gold reached a new all-time high of $2,350 per ounce, reflecting investor concerns about economic stability.
This correlation suggests market participants increasingly view Bitcoin as a hedge against dollar weakness and potential economic turbulence. The market now awaits further developments regarding Trump’s stance toward the Federal Reserve.
Any escalation could trigger additional volatility across financial markets, potentially strengthening Bitcoin’s position as an alternative store of value in uncertain times.