Investing.com-- Bitcoin rose sharply on Thursday, rebounding from recent losses as risk appetite was boosted by U.S. President Donald Trump postponing his plans to impose steep reciprocal tariffs.
But overall gains were limited by fears of a rapidly escalating U.S.-China trade war, given that Trump did not exempt China and hiked his tariffs on the country, drawing retaliatory measures from Beijing.
Crypto prices moved largely in lockstep with broader risk-driven markets, which rallied since Wednesday evening after Trump announced the tariff exemptions.
But gains in Bitcoin lagged those seen in equities and currency markets, with crypto markets also on edge after Strategy, the world’s biggest corporate Bitcoin holder, reported a steep loss on the value of its digital asset holdings.
Bitcoin rose 4% to $80,780.0 by 09:44 ET (13:44 GMT). The world’s largest cryptocurrency traded above a five-month low hit earlier in April.
Bitcoin, crypto track broader market bounce on Trump tariff relief
Bitcoin’s gains came amid a broader risk-on mood in markets, as Trump announced a 90-day extension to his plans to impose steep trade tariffs on major global economies.
The period gives countries more time to negotiate with the U.S. and strike new trade deals, potentially dampening the impact of Trump’s tariffs on supply chains and the economy.
But Trump did not grant China any exemptions, hiking tariffs on Beijing to 120% over the country’s retaliation against his initial tariffs. China on Wednesday outlined 84% trade tariffs on U.S. goods, and showed little intent to back down.
The tariff exchange pointed to an escalating trade war between the world’s two largest economies, which could still disrupt global supply chains and rattle risk-driven markets.
U.S. and Chinese tariffs went into effect on Thursday.
Uncertainty over Trump’s tariff policies also weighed on risk, given that until Wednesday afternoon, the U.S. President had displayed no intention of backing down from his plans for reciprocal tariffs. This drove some hopes that Washington and Beijing will still be able to reach a trade agreement.
Bitcoin could hit $250K by 2025 end or in 2026, says Cardano founder
Cardano founder Charles Hoskinson believes Bitcoin could climb to $250,000 by the end of this year or in 2026, citing improving market conditions and forthcoming U.S. crypto regulation as key drivers.
In an interview with CNBC, Hoskinson said legislative clarity, especially around stablecoins, could pull major corporations into the crypto space.
The U.S. is moving forward with two major bills—the GENIUS Act in the Senate and the STABLE Act in the House—both of which have cleared committee stages. According to Hoskinson, these developments may encourage the "Magnificent 7" tech giants to adopt dollar-backed digital tokens.
Hoskinson acknowledged near-term uncertainty but suggested that sentiment could shift by late summer.
"[The crypto market] will stall for probably the next three to five months, and then you'll have a huge wave of speculative interest come, probably [in] August or September, into the markets, and that'll carry through probably another six to 12 months," he said.
He also pointed to stronger fundamentals as a supporting factor for his bullish forecast. According to data from Crypto.com, global crypto adoption grew 13% year-over-year in 2024, reaching 659 million users.
While recent tariff threats from U.S. president Donald Trump rattled both equity and crypto markets, Hoskinson believes the impact will be short-lived.
"What will happen is that the tariff stuff will be a dud, and that people will realize that the world is willing to negotiate, and it's really just U.S. versus China," he told CNBC.
Crypto price today: altcoins soar, Dogecoin boosted by ETF cheer
Broader crypto markets all clocked sharp gains, as they also recovered a measure of hefty losses seen over the past week.
Dogecoin rallied more than 6% after fund manager 21Shares said it had applied to list an exchange-traded fund tracking the popular memecoin in U.S. markets. Such a move could potentially inject billions of institutional dollars into the memecoin.
World no.2 crypto Ether jumped over 6% to $1,570.88, while XRP rose nearly 8.3% to $1.98.
Solana, Cardano, and Polygon rose between 5% and 10%, while $TRUMP added 4.2%.
Ambar Warrick contributed to this report.