Investing.com-- Bitcoin rose Thursday, with risk sentiment on the rise on optimism the positive trade negotiations between the U.S. and Japan will be the precursor to broader deals.
At 09:20 ET (13:20 GMT), bitcoin, the world’s largest cryptocurrency, rose 1% to $84,621.0, having 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.
Powell rules out near-term rate cuts; Trump criticizes
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.
This prompted criticism from Trump, with the U.S. president suggesting that his termination from the position should be expedited. Trump’s comments, shared on his Truth Social platform Thursday, indicate his belief that the U.S. central bank should have already lowered interest rates this year, and should do so immediately.
Trump referred to Powell as "Too Late" in his post, stating that "Powell’s termination cannot come fast enough!"
Powell’s term as chair is set to continue until May 2026, and his term as a governor is expected to last until February 2028. Trump’s recent criticism of the Fed echoes the sentiments he expressed during his first term as president.
Crypto price today: altcoins gain, Solana surges almost 7%
Altcoins jumped on Thursday, tracking Bitcoin gains.
World no.2 crypto Ethereum rose 1.7% to $1,595.16.
World no. 3 crypto XRP gained 1.7% to $2.1035.
Solana surged 6.8%, Cardano jumped 2.9% and Polygon added 0.6%.
Among meme tokens, Dogecoin jumped 2.5%.
(Ayushman Ojha contributed to this article.)