Bitcoin surged over 6 percent on Wednesday, reaching a seven-week high as investors reacted positively to U.S. President Donald Trump’s retraction of threats to dismiss Fed Chair Jerome Powell, along with his hints at potential reductions in trade tariffs on China.
The world’s largest cryptocurrency experienced a notable increase of 6.3 percent, climbing to $93,811.0 by 02:35 ET (06:35 GMT), marking its highest price since early March. Currently, Bitcoin is trading at $94,232.25.
This surge followed President Trump’s decision to walk back recent threats aimed at removing Federal Reserve Chair Jerome Powell, a move that had previously unsettled investors concerned about the independence of the central bank. Trump also indicated a possible easing of trade tariffs on China, heightening hopes for a more stable economic outlook. He stated that the U.S. is “doing fine with China” and other nations.
Read more: U.S. Bitcoin ETFs record $5.4 billion in outflows in five weeks
Known for its volatility, Bitcoin has been trading within a tight range for weeks amid ongoing uncertainty regarding U.S. monetary policy and a mixed macroeconomic landscape. However, Wednesday’s movement reflects a renewed confidence that a less aggressive stance from the White House could bolster asset prices.
New investment ventures in cryptocurrency
In related news, a venture led by Brandon Lutnick, chair of brokerage Cantor Fitzgerald, is collaborating with SoftBank Group, Tether, and Bitfinex to invest billions of dollars in cryptocurrency, as reported by the Financial Times on Tuesday, citing sources familiar with the situation.
The consortium aims to channel investments into cryptocurrency through a special purpose acquisition company (SPAC), with the goal of replicating MicroStrategy’s Bitcoin-focused strategy, according to the report.
