Bitcoin Hits $87K Amid Market Rebound and Hopes of Trade War Easing
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Bitcoin saw a 3.4% increase on Wednesday, reaching $87,103.8, as a prolonged drop in crypto prices attracted bargain hunters. Additionally, expectations of a potential reduction in U.S. President Donald Trump’s trade tariffs also boosted risk appetite.
The cryptocurrency market had experienced significant volatility this week, as Trump's comments about creating a crypto reserve sparked a brief recovery from previous losses. However, this rebound was short-lived, as Trump offered little clarity on his crypto plans. Moreover, the U.S. President did not mention cryptocurrencies during his Congressional address on Tuesday evening.
U.S. Commerce Secretary Howard Lutnick's remarks about potential tariff concessions for Canada and Mexico helped raise hopes that Trump's tariffs could be temporary, encouraging riskier assets. This optimism also helped the stock markets recover slightly from recent losses.
Bitcoin had experienced considerable price swings recently, initially dipping below $80,000 due to concerns over trade tariffs. However, Trump's announcement of a crypto reserve, which included Bitcoin, led to a brief market rally. Despite this, the recovery fizzled out as Trump did not provide details about how the reserve would be established or how government funds would be allocated to purchase cryptocurrencies.
Despite the uncertainty, Bitcoin and other cryptocurrencies managed to avoid last week’s lows, supported by some dip-buying activity. Attention is now focused on Trump’s first White House Crypto Summit scheduled for Friday, where more details on his plans for crypto regulation are expected.
In the broader market, other cryptocurrencies also saw gains. Ether rose 3.8% to $2,175.47, XRP increased by 4.3% to $2.4222, while SOL/USD and ADA/USD surged by 3.2% and 14%, respectively. Polygon gained 1.5%. Among meme tokens, Dogecoin rose 2.1%, and $TRUMP saw an almost 5% increase.
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