Bitcoin Rises on U.S.–Japan Trade Optimism, Fed Hawkishness Weighed

Bitcoin rose on Thursday as risk sentiment improved on signs that U.S. trade talks with Japan—and potentially China—may ease global uncertainty, even as the Federal Reserve signaled rates could remain high.

Price Snapshot (as of 09:20 ET / 13:20 GMT)

• Bitcoin: +1% to $84,621.0

• Intraday low: Near $83,000 on Wednesday

Trade Talks Spur Risk Appetite

• “Big progress” with Japan:

  • President Trump praised early negotiations with a Japanese trade delegation, calling the sessions a precursor to broader deals.

• China open to talks:

  • A Bloomberg report indicated Beijing is willing to start formal trade discussions—provided the White House shows “more respect.”

• Impact on Bitcoin:

  • Reduced tariff uncertainty tends to damp safe‑haven demand and boost appetite for risk assets, including cryptocurrencies.

Fed's Stance vs. Trump's Criticism

• Hawkish Fed:

  • Fed Chair Jerome Powell ruled out near‑term rate cuts, emphasizing the need to keep rates elevated to tame inflation.

• Trump's Reaction:

  • On Truth Social, the president renewed his call to remove Powell, arguing rates should already be lower to support growth.

• Market response:

  • Elevated rate expectations can pressure risk assets, but trade optimism outweighed those concerns for Bitcoin on Thursday.

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This blend of trade‑talk optimism and Fed caution created a volatile backdrop, yet Bitcoin managed to extend its rebound as investors balanced hopes for easing tariffs against the prospect of sustained high interest rates.