Bitcoin Rises. Tariffs, the Dollar, and What Else Is Boosting Crypto Prices.

By Elsa Ohlen and Paul R. La MonicaBitcoin and other cryptocurrencies were on the rise Monday, with the largest digital coin at one point reaching its highest level since President Donald Trump announced reciprocal tariffs. There could be even more upside.The move comes as major U.S. stock indexes fall, weighed down by escalating trade tensions between the U.S. and China and Trump's renewed attacks on Federal Reserve Chair Jerome Powell. On the trade front: Chinese officials warned countries negotiating with the White House that they will face retaliatory tariffs from China if they strike deals that harm Beijing. On the Fed: The president accused Powell of being politically motivated.Meanwhile, the dollar index fell to a three-year low. The falling dollar and broader uncertainty is helping cryptos and other assets seen as alternatives like gold.The price of Bitcoin is up more than 4% to above $88,300, according to CoinDesk data. That's the highest intraday level since April 3, the day after the administration's tariffs announcement, when it hit $88,459.24. Reciprocal tariffs were announced after equity markets closed on April 2.Bitcoin is still almost 20% below the all-time high of a little under $110,000 that it hit in mid-January shortly before Trump's inauguration.Many crypto experts predicted Bitcoin could rise more because of friendly Trump policies. Instead, Bitcoin and other cryptos have tanked along with stocks and other riskier assets.But Bitcoin could be on the verge of a broader comeback. The token has been stuck in a trading range of $75,000 to $90,000 — but will break out if it tops $90,000, wrote Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report.Some also argue that Trump's growing criticism of Powell could be boosting Bitcoin. Crypto investors may be looking forward to lower interest rates from the eventual next Fed chair."If Trump were to be successful in removing Powell, and putting in place a more 'dovish' chairman, this could be viewed as a positive for cryptocurrencies as Bitcoin and alt coins have historically done better in lower interest rate environments," wrote Cantor analyst Brett Knoblauch in a report.On Monday, XRP, the popular altcoin used on Ripple's payment platform, Ether, Solana were all up roughly 2%.In other crypto news, a group of crypto companies, including Circle and BitGo, are planning to apply for bank charters or licenses, The Wall Street Journal reported Monday, citing people familiar with the matter. Circle and BitGo declined to comment.Some crypto firms are eyeing bank charters that would allow them to run their businesses more like traditional lenders, while others are interested in narrower licenses enabling them to issue stablecoins. Either way, such a move could help crypto become more intertwined with the banking system.Crypto exchange Coinbase is also exploring licensing options, according to the WSJ report. Coinbase didn't immediately respond to a request for comment.Write to Elsa Ohlen at [email protected] and Paul R. La Monica at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.