The US Dollar Index (DXY) has reached a three-year low, following rumors of President Trump considering replacing Federal Reserve Chairman Jerome Powell. This news has boosted Bitcoin's price to its highest level since Trump's Liberation Day.

The decline in DXY, dropping below 99 to 98.2 currently, is the lowest level since March 2022. Economist Peter Schiff has pointed out the seriousness of the situation, noting the rising prices of gold and the euro surpassing $1.15, while the dollar has weakened against other currencies.

The pressure on the dollar intensified after National Economic Council Director Kevin Hassett confirmed that Trump's team is looking into the possibility of removing Powell due to his policy decisions favoring Democrats. Trump has criticized Powell for not acting swiftly on interest rate cuts like the European Central Bank.

The potential termination of Powell raises concerns about the Fed's independence and its impact on global markets. If Powell is removed and interest rates are cut as demanded by Trump, it could lead to a rally in the crypto market, with Bitcoin considered a safe haven against inflation and weakening fiat currencies.

The recent drop in the dollar index coincides with Bitcoin's price increase, reaching over $87,000 for the first time since April 2. Analysts attribute this rise to the weakening US dollar, highlighting the inverse relationship between DXY and Bitcoin and suggesting a potential rally if the dollar continues to depreciate.