Investing.com-- Bitcoin surged over 6% on Wednesday, hitting a seven-week high, as investors cheered U.S. President Donald Trump’s withdrawal of threats to dismiss Fed Chair Jerome Powell and his indication of potential trade tariff reductions on China.
The world’s largest cryptocurrency surged 6.3% to $93,811.0 by 02:35 ET (06:35 GMT) to hit its highest level since early March.
Trump eases Fed, tariff rhetoric; boosts risk appetite
The surge came after U.S. President Donald Trump walked back recent threats to remove Federal Reserve Chair Jerome Powell, a move that had rattled investors concerned about central bank independence.
Trump also signaled a potential easing of trade tariffs on China, fueling hopes for a more stable economic outlook.
Trump asserted that the U.S. is "doing fine with China" and other countries.
Bitcoin, known for its volatility, has been trading in a tight range for weeks amid uncertainty over U.S. monetary policy and a mixed macroeconomic backdrop.
But Wednesday’s move reflects renewed confidence that a less aggressive trade posture from the White House could support asset prices.
Cantor nears $3 bln crypto SPAC venture with Softbank (OTC: SFTBY ), Tether- FT
A venture led by Brandon Lutnick, chair of brokerage Cantor Fitzgerald, is joining forces with SoftBank Group (TYO: 9984 ), Tether, and Bitfinex to invest billions of dollars in crypto, the Financial Times reported on Tuesday, citing people with knowledge of the matter.
The group plans to invest in crypto through a special purpose acquisition company (SPAC), aiming to replicate MicroStrategy’s Bitcoin-focused strategy, according to the report.
The SPAC will receive $3 billion in Bitcoin from the partners and plans to raise an additional $550 million in bonds and equity to expand its holdings, the FT reported.
The venture also reflects a broader bet on a potential crypto resurgence under Donald Trump, who has pledged to support more crypto-friendly policies. It remains unclear whether the SPAC will focus solely on Bitcoin or include other crypto assets, the report added.
Crypto price today: altcoins surge, Ethereum jumps over 13%
Altcoins were also trading sharply higher on Monday amid a broader increase in appetite for risk assets.
World no.2 crypto Ethereum surged 13.5% to $1,796.57.
World no. 3 crypto XRP jumped 7.7% to $2.2358.
Solana rose 8.8%, while Cardano advanced 11.4%, and Polygon added 5.4%
Among meme tokens, Dogecoin surged nearly 13%, while $TRUMP was trading 14% higher.