Bitcoin rose on Thursday as demand on high-risk assets rebounded on optimism about US trade talks with allies, while investors assess the Federal Reserve’s latest policy meeting.
On the trade front, the markets were boosted by reports about a meeting between US Treasury Secretary Scott Bessent and Chinese officials in Switzerland to discuss the tariffs and a potential trade agreement.
Bessent cautioned that this step aims at de-escalation and not reaching a full trade deal.
Trump’s Son
US President Trump’s son Eric announced that he owns a “large amount” of bitcoin, asserting his faith in the future of this cryptocurrency during his participation at the TOKEN2049 event in Dubai, describing bitcoin as “digital gold” and expecting long-term growth in value.
Even as Eric hasn’t revealed the exact sum of this investment, it shows the commitment of the Trump’s family towards cryptocurrencies, which is a notable conversion after previous criticism towards the industry.
Trump has repeatedly expressed his support for crypto assets, considering it a strategic advantage for the US over China, and signing an executive order in March to start joining seized bitcoin to the US strategic reserve.
Trump also appointed Paul Atkins as the new SEC chief and tasked him with drawing up new regulations that support crypto innovations, in a radical departure from the previous administration’s stance.
Conflict of Interest
Trump however has faced criticism about a potential conflict of interest, due to his company World Liberty Financial’s clear connections to the crypto industry, and especially after Trump launched his own meme coin, which triggered calls for investigations from the Senate Democrats.
The Fed
In a step that wasn’t surprising, the Fed decided to maintain interest rates unchanged at below 4.5%, due to ongoing economic uncertainty.
The statements asserted the FOMC continues to monitor risks closely, and believes that unemployment and higher inflation risks are on the upside.
The statement hinted that tariffs threaten higher prices and could slow growth, which opens the door to the scenario of inflationary recession.
Most Fed policymakers believe the central bank is in a good position to hold off modifying policies until clear data presents itself.
Bitcoin
Bitcoin rose 2.5% on Coinmarketcap as of 13:49 GMT to $99.5 thousand.
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