Investing.com-- Bitcoin climbed on Thursday as markets hoped U.S. President Donald Trump would negotiate tariffs with key trading partners, while they assessed Federal Reserve Chair Jerome Powell’s hawkish comments.
The world’s largest cryptocurrency rose 1.6% to $84,699.0 by 03:15 ET (07:15 GMT).
The token had fallen to a low of near $83,000 on Wednesday.
Trump hails ’big progress’ in tariff talks with Japan
The cryptocurrency gained ground as markets responded positively to signs of possible tariff negotiations with major U.S. trading partners, including Japan and China.
President Trump said “big progress” was made after a meeting with a Japanese trade delegation in Washington on Wednesday, as the two nations opened talks aimed at resolving tensions over a wave of U.S. tariffs.
The talks mark the start of formal negotiations to reach a bilateral trade deal amid growing concerns over the economic fallout from U.S. tariffs.
Additionally, a Bloomberg report on Wednesday showed that China is open to beginning trade talks with the Trump administration, but is demanding that the White House show more respect.
Investors viewed these developments as potentially reducing global economic uncertainty, which often drives interest in alternative assets like Bitcoin.
Fed’s Powell rules out near-term rate cuts
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. Powell highlighted the need for a wait-and-see approach.
"Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem," Powell said in prepared remarks at the Economic Club of Chicago.
Crypto price today: altcoins gain, Solana surges 8%
Altcoins jumped on Thursday, tracking Bitcoin gains.
World no.2 crypto Ethereum rose 2.8% to $1,608.20.
World no. 3 crypto XRP gained 2.4% to $2.0991.
Solana surged 8%, while Cardano jumped 3.3% and Polygon added 1%.
Among meme tokens, Dogecoin jumped 3%.