Investing.com-- Bitcoin rose sharply on Thursday, rebounding from recent losses as risk appetite was boosted by U.S. President Donald Trump postponing his plans to impose steep reciprocal tariffs.
But overall gains were limited by fears of a rapidly escalating U.S.-China trade war, given that Trump did not exempt China and hiked his tariffs on the country, drawing retaliatory measures from Beijing.
Crypto prices moved largely in lockstep with broader risk-driven markets, which rallied since Wednesday evening after Trump announced the tariff exemptions.
But gains in Bitcoin lagged those seen in equities and currency markets, with crypto markets also on edge after Strategy, the world’s biggest corporate Bitcoin holder, reported a steep loss on the value of its digital asset holdings.
Bitcoin rose 4% to $80,780.0 by 09:44 ET (13:44 GMT). The world’s largest cryptocurrency traded above a five-month low hit earlier in April.
The tariff exchange pointed to an escalating trade war between the world’s two largest economies, which could still disrupt global supply chains and rattle risk-driven markets.
U.S. and Chinese tariffs went into effect on Thursday.
Uncertainty over Trump’s tariff policies also weighed on risk, given that until Wednesday afternoon, the U.S. President had displayed no intention of backing down from his plans for reciprocal tariffs. This drove some hopes that Washington and Beijing will still be able to reach a trade agreement.
Cardano founder Charles Hoskinson believes Bitcoin could climb to $250,000 by the end of this year or in 2026, citing improving market conditions and forthcoming U.S. crypto regulation as key drivers.
In an interview with CNBC, Hoskinson said legislative clarity, especially around stablecoins, could pull major corporations into the crypto space.
The U.S. is moving forward with two major bills—the GENIUS Act in the Senate and the STABLE Act in the House—both of which have cleared committee stages. According to Hoskinson, these developments may encourage the "Magnificent 7" tech giants to adopt dollar-backed digital tokens.
Hoskinson acknowledged near-term uncertainty but suggested that sentiment could shift by late summer.
"[The crypto market] will stall for probably the next three to five months, and then you’ll have a huge wave of speculative interest come, probably [in] August or September, into the markets, and that’ll carry through probably another six to 12 months," he said.
While recent tariff threats from U.S. president Donald Trump rattled both equity and crypto markets, Hoskinson believes the impact will be short-lived.
"What will happen is that the tariff stuff will be a dud, and that people will realize that the world is willing to negotiate, and it’s really just U.S. versus China," he told CNBC
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Investing.com-- Bitcoin fell on Friday, retreating after a short-lived rebound as risk appetite was dented by heightened concerns over a U.S.-China trade war, which largely offset relief over President Donald Trump postponing plans for higher tariffs.
The world’s biggest cryptocurrency tracked losses in broader risk-driven markets, as the U.S. and China imposed a volley of steep trade tariffs on each other. The move drove up concerns over a bitter trade war between the world’s biggest economies which could severely crimp growth.
Bitcoin was trading down 3.4% so far this week after logging wild swings on heightened uncertainty over global trade and economic growth.
The world’s biggest cryptocurrency had slumped as low as $74,000 after Trump initially showed little intent to back off from his plans for reciprocal tariffs. But Bitcoin had then rebounded sharply after Trump announced a 90-day extension to the imposition of his steep reciprocal tariffs against major U.S. trading partners.
But China was not included in this extension, with Trump instead hiking tariffs on the country to a staggering 145%, drawing ire from Beijing. China retaliated by imposing 84% tariffs on the U.S. earlier this week.
Losses in crypto came in tandem with a sharp sell-down in broader risk-driven markets, particularly equities. Bitcoin has moved largely in lockstep with U.S. stocks, specifically the Nasdaq, raising more questions over the crypto’s validity as a safe haven or inflation hedge.
Safe havens such as gold and the Japanese yen were the top performing assets this week.
Bitcoin was also dented this week by major corporate holder Strategy (NASDAQ:MSTR) disclosing a $5.9 billion unrealized loss on its digital asset holdings, especially following a prolonged slump in Bitcoin prices.
Several major whales were also seen mobilizing vast amounts of Bitcoin onto exchanges, potentially heralding more sale action.
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