Bitcoin price today: recovers to $88k amid dip buying, tariff relief hopes

Investing.com-- Bitcoin rose on Wednesday as an extended rout in crypto prices drew in some bargain buying, while hopes of a scaling down in U.S. President Donald Trump’s trade tariffs also aided risk appetite. 

The world’s largest crypto saw wild swings this week as Trump’s promises of a crypto reserve sparked a sharp rebound from last week’s losses. But this rebound proved to be short-lived as Trump gave few cues on his crypto plans.

The U.S. President also made no mention of crypto during an address in Congress on Tuesday evening.

Bitcoin rose 6.4% to $88,553.0 by 10:18 ET (15:18 GMT). 

Meanwhile, the DXY index, which gauges the U.S. dollar’s strength, has fallen below 105 for the first time since mid-November.

Lutnick comments spark hopes of tariff relief 

U.S. Commerce Secretary Howard Lutnick said on Tuesday evening that Trump could make concessions for Canada and Mexico after imposing 25% tariffs against both countries this week. The two countries had lambasted the move and introduced a host of retaliatory measures. 

Trump also imposed 20% tariffs against China.

Lutnick’s comments drove up hopes that Trump’s tariffs will be a negotiating tool and will prove to be short-lived, sparking appetite for risk-driven assets. Stock markets were also seen recovering mildly from recent losses.

But Trump made no mention of any tariff concessions during a Tuesday address before Congress. The U.S. President instead appeared to double down on his tariff agenda, stating that even more measures were coming by early-April. 

Bitcoin clocks wild swings ahead of Trump crypto summit 

Bitcoin was nursing wild swings over the past week, having initially tumbled below $80,000 amid persistent concerns over trade tariffs.

Trump’s announcement of five cryptos, including Bitcoin, which will be in a planned crypto reserve, sparked a sharp recovery in the market. But this recovery was short-lived, given that Trump did not clarify two key questions over the reserve: how it will be formed and what government funds will be deployed towards buying crypto. 

“Digital tokens are following a stock market spiralling into risk-off mode," Petr Kozyakov, Co-Founder and CEO of Mercuryo told Investing.com. "Investor concern over tariffs and a worsening economic outlook is dominating sentiment and spurring a withdrawal from all assets perceived as being on the riskier end of the spectrum.”

Still, Bitcoin and broader cryptos were kept off last week’s lows by a measure of dip-buying. 

Focus is now on Trump’s first White House Crypto Summit this Friday, which is widely expected to offer more cues on his plans for crypto regulation. 

Crypto price today: altcoins track Bitcoin recovery

Broader crypto prices rose, also benefiting from a measure of bargain buying. 

World no.2 crypto Ether rose 6.3% to $2,178.26, while XRP jumped 5% to $2.4.

SOL/USD and ADA/USD jumped 5% and 17%, respectively, while Polygon climbed 4.8%.

Among meme tokens, Dogecoin rose 4.7%, while $TRUMP added nearly 7%.

Ambar Warrick contributed to this report.