Bitcoin experienced a decline on Thursday following a surge in the previous session, as investors took profits from the cryptocurrency’s seven-week high. Despite the dip, the world’s largest cryptocurrency found support in signs of improving trade relations between the U.S. and its major trading partners.
At 02:35 ET (06:35 GMT), Bitcoin was down 1.2%, trading at $92,575.30. Earlier in the week, the digital asset had surged nearly 7%, surpassing $94,000 and reaching its highest level since early March.
Easing Trade Tensions Boost Risk Appetite
The rally was sparked by a series of developments signaling a potential thaw in U.S.-China trade tensions. U.S. President Donald Trump softened his recent threats to remove Federal Reserve Chair Jerome Powell and indicated the possibility of reducing tariffs on China. This announcement helped fuel optimism for a more stable economic outlook.
Further, U.S. Treasury Secretary Scott Bessent commented that the high tariffs between the U.S. and China were “unsustainable,” echoing the Trump administration’s willingness to ease trade tensions. Additional support came from reports that Japan’s Economy Minister Ryosei Akazawa is scheduled to visit Washington from April 30 to May 2 for a second round of tariff talks. These factors helped increase global risk appetite, driving capital into Bitcoin and other risk-sensitive assets.
Bitcoin Overtakes Google in Market Value
On Wednesday, Bitcoin briefly surpassed Alphabet (Google’s parent company) to become the fifth-largest asset in the world by market capitalization, valued at approximately $1.87 trillion. This placed Bitcoin ahead of tech giants such as Google, Amazon, Meta, and others, with only gold, Apple, Microsoft, and Nvidia ahead of it in the global asset rankings. However, following Thursday’s drop, Bitcoin slipped back to eighth position, now trailing silver in market value.
Altcoins Fall Amid Broader Market Decline
Altcoins also saw a decline after their sharp rally the day before, reflecting the broader risk-on sentiment. Ethereum, the second-largest cryptocurrency, dropped 0.8%, trading at $1,774.93. XRP, the third-largest crypto, fell 2.8% to $2.18. Other altcoins, including Solana, Cardano, and Polygon, also experienced losses ranging from 0.5% to 1.3%. Meme coin Dogecoin saw the largest drop among these, losing 4% of its value.
Related Topics:
