Bitcoin Surges 1% to $84,621.0 on Positive Tariff Talks

Bitcoin's price experienced a notable increase on Thursday, driven by an improved risk sentiment following positive developments in tariff talks between the U.S. and its major trading partners. At 09:20 ET (13:20 GMT), the world’s largest cryptocurrency rose by 1% to $84,621.0, recovering from a low of near $83,000 on Wednesday.

The cryptocurrency market responded positively to signs of potential tariff negotiations with major U.S. trading partners, including Japan and China. President Trump highlighted “big progress” made after a meeting with a Japanese trade delegation in Washington, marking the start of formal negotiations to reach a bilateral trade deal. This development was seen as a potential reduction in global economic uncertainty, which often drives interest in alternative assets like Bitcoin.

Additionally, reports indicated that China is open to beginning trade talks with the Trump administration, further boosting market optimism. Investors viewed these developments as potentially reducing global economic uncertainty, which often drives interest in alternative assets like Bitcoin.

Meanwhile, traders also digested hawkish remarks from Federal Reserve Chair Jerome Powell, who signaled that interest rates could remain elevated for longer to curb inflation. The Fed’s cautious stance comes amid concerns that the tariffs could lead to higher consumer prices and slower economic growth. This prompted criticism from Trump, who suggested that Powell should have already lowered interest rates this year and should do so immediately. Trump’s comments indicate his belief that the U.S. central bank should have already lowered interest rates this year, and should do so immediately.

Despite the hawkish remarks from the Fed, the overall sentiment in the cryptocurrency market remained bullish. Altcoins also tracked Bitcoin's gains, with Ethereum rising 1.7% to $1,595.16, XRP gaining 1.7% to $2.1035, Solana surging 6.8%, Cardano jumping 2.9%, and Polygon adding 0.6%. Among meme tokens, Dogecoin jumped 2.5%.

In summary, Bitcoin's price gains on Thursday were driven by improved risk sentiment following positive developments in tariff talks between the U.S. and its major trading partners. While hawkish remarks from the Federal Reserve Chair Jerome Powell signaled potential challenges ahead, the overall market sentiment remained bullish, with altcoins also tracking Bitcoin's gains. The developments in tariff talks and the Fed's stance highlight the complex interplay between global trade dynamics and monetary policy, which continue to influence the cryptocurrency market.