Bitcoin surged over 2% to reach $87,200, leading a rally in cryptocurrency markets as the dollar index dipped to a three-year low due to concerns regarding the Federal Reserve's independence. Reports of President Trump potentially seeking to remove Fed Chairman Jerome Powell prompted traders to sell the dollar, benefiting Bitcoin and gold. Alternative cryptocurrencies such as XRP, ETH, and ADA also saw gains, albeit lesser than Bitcoin. The weak dollar is expected to facilitate more risk-taking in financial markets. Gold prices rose to a record high of $3,382, reflecting a year-to-date gain of 28%. Market analysts noted that a decline in the dollar generally eases financial conditions, fueling interest in assets like Bitcoin and gold. The backdrop of discussion surrounding Powell's position at the Fed appears to be the main catalyst, causing fluctuations across multiple financial instruments.

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