US dollar falls 10% as stocks drop and Bitcoin nears $88,000

US financial markets saw significant losses on April 21 as former President Donald Trump ramped up pressure on Federal Reserve Chair Jerome Powell to lower interest rates.

The SP 500 fell 2.4%, the Nasdaq dropped 2.5%, and the Dow Jones Industrial Average declined 2.5%, losing nearly 1,000 points, according to Google Finance.

Since the beginning of the year, the SP 500 has dropped over 12%, and the Nasdaq has declined nearly 18%, reflecting persistent volatility, particularly in the tech sector.

Trump renewed his calls for “preemptive cuts” to interest rates on his social media platform Truth Social, citing falling energy and food prices and claiming that there is “virtually no inflation.”

Powell has held the benchmark interest rate steady at 4.5%, resisting Trump’s criticism.

The former president has labeled Powell “Mr. Too Late” and a “major loser” and has called for his removal, stating that Powell’s “termination cannot come fast enough.”

In recent remarks, Powell warned that Trump’s proposed trade tariffs could lead to stagflation—a scenario marked by rising prices and sluggish economic growth.

The Federal Reserve is widely expected to keep rates unchanged at its upcoming May 7 meeting, with CME Fed Watch data showing just a 13% probability of a rate cut.

The US Dollar Index fell below 98 on April 21, marking a three-year low and a decline of more than 10% in 2025, based on TradingView data.

Raoul Pal, founder of Real Vision, noted that a weaker dollar is globally favorable for servicing dollar-denominated debt and could drive growth in global money supply.

Cryptocurrency markets, by contrast, remained stable.

Total market capitalisation stood around $2.83 trillion, with Bitcoin (CRYPTO:BTC) reaching a four-week high near $88,500 on April 22.

“Amid one of the most turbulent periods for global markets in years, Bitcoin is showing impressive resilience,” noted Bitfinex analysts.

At the time of reporting, the Bitcoin (BTC) price was $88,115.86.