(Bloomberg) -- Bitcoin rallied to its highest level since Donald Trump’s tariff announcements in early April as the dollar slumped amid renewed fears over the US president’s efforts to remove Federal Reserve Chairman Jerome Powell.

The largest cryptocurrency by market value jumped about 3.9% to top $88,400 on Monday morning in New York, according to data compiled by Bloomberg. That erased almost all of the losses sustained since Trump’s April 2 reciprocal tariff announcement, which plunged global markets into turmoil.

The rebound comes as the dollar and US stocks slid on Monday after the president’s criticism of the Federal Reserve raised concerns over its independence. A gauge of the dollar hit its lowest point since January 2024 after the National Economic Council Director Kevin Hassett said Friday that Trump is studying whether he’s able to fire Powell.

“USD weakness is driving the rally in crypto,” said Sean McNulty, derivatives trading lead of APAC at digital-asset prime brokerage FalconX. He added, however, that “thin holiday liquidity” in crypto markets “is causing the move to be exaggerated.” While US markets are open, Monday is a holiday in many nations.

Bitcoin’s recovery coincided with another surge in gold, which climbed to a fresh record, further highlighting investor demand for perceived safe-haven and inflation-hedging assets.

Trump aimed another broadside at Powell on Monday, warning that the US economy may slow if the Fed does not move to immediately reduce interest rates.