Bitcoin (BTC), the market’s leading cryptocurrency, has seen a remarkable surge of 10% over the past week, maintaining its position above $90,000 since Tuesday.
This upward momentum comes as President Donald Trump softens his approach toward the Federal Reserve and suggests that trade negotiations, particularly with China, are progressing positively.
Bitcoin And Major Altcoins Rally
Earlier this month, President Trump had announced a 90-day pause on imposing significant tariffs on various US trading partners. This decision appears to have revitalized investor confidence in Bitcoin, which reached a peak of $94,000 on Wednesday, marking its highest value since March 2, after recovering from a low of $75,000 earlier this month.
The broader cryptocurrency market has mirrored Bitcoin’s gains, with Ethereum (ETH) rising by 11%, XRP increasing by 7%, and Solana (SOL) climbing 13% over the last week.
James Gernetzke, CFO of crypto exchange Exodus, noted, “While the broader macro environment may be very volatile, especially for equities and fixed income, the digital asset class has been holding up remarkably well.”
The recent fluctuations in Bitcoin’s price can be traced back to Trump’s earlier announcements of sweeping tariffs, which initially sent the cryptocurrency market into a tailspin.
However, after the temporary pause on tariffs for most countries, investor sentiment shifted. Trump’s recent comments signaling a more conciliatory tone toward China—stating his intention to be “very nice” in trade negotiations—have further fueled this renewed optimism. He indicated that he would “substantially” lower tariffs if a deal could be achieved.
Investor Appetite Revives
This shift in tone has reignited investor appetite, with Bitcoin emerging as a primary beneficiary. Juan Leon, an investment strategist at Bitwise, commented, “This week’s announcements from the Trump administration on negotiations with China prospectively leading to a lowering of tariffs have reignited investor appetite.”
Additionally, Treasury Secretary Scott Bessent has suggested that the president is “very close” to finalizing a trade deal with India, with White House officials highlighting progress in discussions with other nations as well.
The market rally is also occurring against a backdrop of Trump’s recent statements regarding Federal Reserve (Fed) Chair Jerome Powell. After briefly expressing frustration over Powell’s reluctance to lower interest rates amid economic turmoil caused by tariffs, Trump reassured markets on Wednesday that he has “no intention” of firing the Fed chair.
Despite the temporary tensions with the Fed, some cryptocurrency advocates view this situation as a testament to Bitcoin’s strength as a decentralized asset. As investors seek alternatives amid volatility in American assets and a weakening US dollar, Bitcoin’s value continues to rise.
James Butterfill, head of research at ETF issuer CoinShares, remarked, “In this environment, investors are seeking alternative safe-haven assets.”
Featured image from DALL-E, chart from TradingView.com
