Bitcoin Surges 2.1% to $84,699.0 on Trade Talks, Fed Remarks

Bitcoin, the world's largest cryptocurrency, experienced a notable surge on Thursday, climbing to $84,699.0 by 03:15 ET (07:15 GMT). This increase came as markets reacted positively to potential tariff negotiations between the U.S. and its key trading partners, including Japan and China, while also assessing the hawkish comments made by Federal Reserve Chair Jerome Powell.

The cryptocurrency had previously fallen to a low of near $83,000 on Wednesday, but the prospect of reduced global economic uncertainty, driven by the potential resolution of trade tensions, sparked renewed interest in alternative assets like Bitcoin. President Trump's statement of "big progress" in tariff talks with Japan, along with reports indicating China's openness to trade talks with the U.S., contributed to this optimism. These developments suggested a potential easing of trade tensions, which could mitigate the economic fallout from U.S. tariffs and stabilize global markets.

In addition to the tariff talks, traders were also digesting hawkish remarks from Federal Reserve Chair Jerome Powell. Powell signaled that interest rates could remain elevated for a longer period to curb inflation, highlighting the need for a cautious approach. His comments came amid concerns that tariffs could lead to higher consumer prices and slower economic growth. Powell emphasized the importance of keeping longer-term inflation expectations well-anchored to prevent a one-time price increase from becoming an ongoing inflation problem.

The combination of potential trade resolution and the Fed's cautious stance on interest rates created a favorable environment for Bitcoin and other cryptocurrencies. Altcoins also saw gains on Thursday, tracking Bitcoin's upward trajectory. Ethereum, the world's second-largest cryptocurrency, rose by 2.8% to $1,608.20, while XRP, the third-largest, gained 2.4% to $2.0991. Solana surged by 8%, Cardano jumped by 3.3%, and Polygon added 1%. Among meme tokens, Dogecoin saw a 3% increase.