Bitcoin price rises to $81k amid tariffs and recession fears.
Bitcoin climbed on Wednesday, recouping some of its recent losses, but gains were restricted due to ongoing risk aversion stemming from fears about US trade tariffs and slowing economic growth.
Traders were also observed avoiding large bets ahead of the much regarded US inflation data due later in the day. Bitcoin had risen 2% to $81,830.3 by 01:21 ET (05:21 GMT).
Crypto prices have experienced significant declines over the past two weeks, with few good indicators for the market.
Trump tariff anxieties and recession concerns dampen cryptocurrency enthusiasm.
Trump’s new 25% tariffs on steel and aluminium imports went into effect on Wednesday, soon after backing down from a threat to levy 50% tariffs on Canadian goods.
However, his reversal on tariffs, combined with exemptions for major import industries in Canada and Mexico, has increased economic uncertainty.
Trump defended his tariff policies and stated that he does not expect a recession. According to U.S. Commerce Secretary Howard Lutnick, implementing Trump’s plan is “worth it” despite the possibility of a recession.
However, markets remained on edge as further economic headwinds loomed, particularly as concerns grew that Trump’s tariffs would drive up US inflation and slow growth.
In recent weeks, the U.S. stock market has experienced a prolonged downturn, which has had a significant impact on cryptocurrency markets. Speculative assets, such as cryptocurrency, are typically sold during periods of high volatility and risk aversion.
Trump’s declaration of a Bitcoin reserve did not excite markets, as it will not include any fresh cryptocurrency acquisitions.
Today’s cryptocurrency price: altcoins are cautious, nurse losses ahead of CPI data
Broader cryptocurrency prices remained in a narrow range after suffering significant losses over the previous two weeks. Bitcoin and other cryptocurrencies have already completely erased all gains earned since Trump’s November election triumph, and they are trading much below record highs set in January.
The world’s second biggest cryptocurrency Ether lost 1.1% to $1,873.87, maintaining its over-three-year low. XRP, Cardano, and Solana traded in a flat-to-low range, near their annual lows.
Dogecoin surged 2.3%, while $TRUMP declined 2.2%.
Traders were also nervous ahead of key consumer price index data due later on Wednesday, which is likely to show inflation remained stable in February.
Sticky inflation reduces the Federal Reserve’s incentive to lower interest rates, thus impacting speculative assets like cryptocurrency.
Which stock should you buy for your next trade?
With values increasing in 2024, many investors are hesitant to put more money into equities. Unsure where to invest next? Gain access to our established portfolios and identify high-potential possibilities.
In 2024 alone, ProPicks AI identified two stocks that increased by more than 150%, four other stocks that increased by more than 30%, and three more that increased by more than 25%. That is an impressive track record.
Portfolios for Dow, S&P, Tech, and Mid Cap stocks offer diverse wealth-building opportunities.