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).
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 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.
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%.