Investing.com-- Bitcoin rose on Wednesday as an extended rout in crypto prices drew in some bargain buying, while hopes of a scaling down in U.S. President Donald Trump’s trade tariffs also aided risk appetite.
The world’s largest crypto saw wild swings this week as Trump’s promises of a crypto reserve sparked a sharp rebound from last week’s losses. But this rebound proved to be short-lived as Trump gave few cues on his crypto plans.
The U.S. President also made no mention of crypto during an address in Congress on Tuesday evening.
Bitcoin rose 3.4% to $87,103.8 by 00:51 ET (05:51 GMT).
Lutnick comments spark hopes of tariff relief
U.S. Commerce Secretary Howard Lutnick said on Tuesday evening that Trump could make concessions for Canada and Mexico after imposing 25% tariffs against both countries this week. The two countries had lambasted the move and introduced a host of retaliatory measures.
Trump also imposed 20% tariffs against China.
Lutnick’s comments drove up hopes that Trump’s tariffs will be a negotiating tool and will prove to be short-lived, sparking appetite for risk-driven assets. Stock markets were also seen recovering mildly from recent losses.
But Trump made no mention of any tariff concessions during a Tuesday address before Congress. The U.S. President instead appeared to double down on his tariff agenda, stating that even more measures were coming by early-April.
Bitcoin clocks wild swings ahead of Trump crypto summit
Bitcoin was nursing wild swings over the past week, having initially tumbled below $80,000 amid persistent concerns over trade tariffs.
Trump’s announcement of five cryptos, including Bitcoin, which will be in a planned crypto reserve, sparked a sharp recovery in the market. But this recovery was short-lived, given that Trump did not clarify two key questions over the reserve- how it will be formed and what government funds will be deployed towards buying crypto.
Still, Bitcoin and broader cryptos were kept off last week’s lows by a measure of dip-buying.
Focus is now on Trump’s first White House Crypto Summit this Friday, which is widely expected to offer more cues on his plans for crypto regulation.
Crypto price today: altcoins track Bitcoin recovery
Broader crypto prices rose, also benefiting from a measure of bargain buying.
World no.2 crypto Ether rose 3.8% to $2,175.47, while XRP rose 4.3% to $2.4222.
SOL/USD and ADA/USD jumped 3.2% and 14%, respectively, while Polygon rose 1.5%.
Among meme tokens, Dogecoin rose 2.1%, while $TRUMP added nearly 5%.