Investing.com-- Bitcoin rose on Thursday, recovering further from recent losses as sentiment was buoyed slightly by softer-than-expected U.S. inflation data.
But gains in Bitcoin and the broader crypto sector were limited as risk appetite remained under pressure from persistent concerns over an escalating trade war under U.S. President Donald Trump, as well as fears of a recession.
The world’s biggest cryptocurrency had slumped below $80,000 earlier this month on rampant risk-aversion, while Trump’s plans for a Bitcoin reserve also largely underwhelmed. But dip-buying and some hopes of more friendly regulation helped Bitcoin mark a mild recovery.
Bitcoin rose 1.8% to $83,511.6 by 01:27 ET (05:27 GMT). The crypto took few positive cues from an overnight rebound on Wall Street, as U.S. consumer price index inflation read softer than expected.
Bitcoin’s rebound from its weakest levels this year was stalled by persistent concerns over a potential U.S. recession, as well as fears of a rapidly escalating U.S.-led trade war.
Trump’s 25% tariffs on steel and aluminum took effect from Wednesday, with the U.S. President promising to impose reciprocal tariffs by April 2. Reports also showed that Trump was planning even higher trade duties against Europe.
Markets feared that Trump’s tariffs could disrupt global trade and underpin U.S. inflation, pressuring the economy and bringing about a recession this year. Trump and his cabinet have largely dismissed such concerns, but have flagged some near-term turbulence as his policies are enacted.
Trump has also flip-flopped on some of his tariff plans, having granted Canada and Mexico an extended exemption from some import tariffs. This uncertainty has also kept markets on edge.
Risk-heavy assets such as crypto, which are largely speculative in nature, tend to underperform in times of increased volatility and risk aversion.
This saw Bitcoin vastly underperform U.S. stock markets so far in 2025, with the world’s biggest crypto having lost about 10% year-to-date, compared to a 4.6% loss in the S&P 500 index .
Broader crypto prices tracked Bitcoin’s mild gains, but still remained close to recent lows amid little relief for markets.
World no.2 crypto Ether fell 0.6% to $1,866.80, lagging its peers after it slumped to an over three-year low earlier in March.
Solana , Cardano , and XRP rose marginally, as did Polygon . Among meme tokens, Dogecoin rose 3.3%, while $TRUMP added 4.2%.
Focus was now on producer price index data, due later on Thursday, for more cues on U.S. inflation. The reading comes less than a week before a Federal Reserve meeting , where the central bank is widely expected to keep interest rates steady amid rampant economic uncertainty.