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Bitcoin extended its gains on Thursday, building on the momentum from the prior session as improved sentiment in U.S. trade relations and broader risk appetite spurred positive price action. The cryptocurrency broke out of its typical $103,000 to $108,000 trading range, although market participants are still cautious ahead of crucial U.S. economic data releases later in the day.
Bitcoin Benefits from U.S. Trade Optimism
The world’s largest cryptocurrency rose by 2.3%, reaching $109,113.8 by 01:15 ET (05:15 GMT), as market optimism about U.S. trade relations pushed sentiment higher. Bitcoin was buoyed by progress in U.S. trade talks, particularly the trade deal with Vietnam announced on Wednesday, which marked a third agreement for the U.S. ahead of the July 9 deadline. In addition to the Vietnam deal, the U.S. also eased restrictions on chip technology exports to China, after the two countries reached a framework trade deal in June.
These developments raised hopes for more trade deals before the looming deadline, with U.S. officials indicating that a deal with India was close, though talks with Japan and South Korea seemed to stall. President Trump also confirmed that he has no plans to extend the July 9 deadline for the imposition of steep tariffs on key trading partners.
Tax Bill and Economic Data in Focus
Despite trade optimism, attention remains on a controversial tax bill making its way through the U.S. Congress. The House of Representatives is set to vote on the bill later today, but reports indicate that it is still being debated, with some Republican lawmakers expressing opposition. The bill, which is expected to add significantly to the national debt, has sparked concerns about its impact on U.S. fiscal health, with critics arguing that it may heighten economic risks.
In addition to the tax bill, investors are also focused on the release of key U.S. labor market data, including the highly anticipated nonfarm payrolls report for June. The data will provide insights into the strength of the labor market, and any signs of cooling could potentially lead to further speculation regarding interest rate cuts by the Federal Reserve.
Altcoins Track Bitcoin’s Gains
Broader cryptocurrency markets rose in tandem with Bitcoin, as altcoins rebounded from a dismal performance in June. Ether, the second-largest cryptocurrency, saw a notable 6.1% gain, reaching $2,592.85, while XRP rose 3.7% to $2.2684. Other altcoins, such as Solana and Cardano, also posted strong performances, with Cardano rising 7.8% after a significant drop last month.
Among meme coins, Dogecoin saw a substantial 8.1% increase, while $TRUMP rose 4.4%, reflecting the broader positive sentiment in the crypto market.
As the U.S. trade landscape continues to evolve, cryptocurrencies are benefiting from a combination of optimism around trade deals and speculation regarding U.S. monetary policy. The outlook remains fluid, and any developments in trade negotiations or economic data could have a significant impact on the trajectory of both traditional and digital markets.
