Bitcoin Rises to $83,511 Amid Inflation Relief but Faces Trade War, Recession Fears

Bitcoin climbed 1.8% to $83,511 on Thursday, recovering from recent losses as softer-than-expected U.S. inflation data provided slight relief. However, gains were capped by ongoing fears of a U.S. recession and escalating trade tensions under President Donald Trump.

The world’s largest cryptocurrency had dropped below $80,000 earlier this month amid risk aversion, while Trump’s announcement of a Bitcoin reserve failed to boost sentiment. Still, dip-buying and hopes for favorable regulation supported a mild rebound.

Despite Bitcoin’s recovery, its gains lagged behind U.S. stocks, which reacted positively to the inflation data. The Consumer Price Index (CPI) came in lower than expected, fueling speculation about the Federal Reserve’s next move.

Concerns over Trump’s aggressive trade policies continue to weigh on markets. His 25% tariffs on steel and aluminum took effect Wednesday, with additional tariffs on European imports expected. Investors fear these measures could disrupt global trade, drive inflation higher, and trigger a U.S. recession. While Trump dismissed such risks, uncertainty remains high.

Crypto markets struggled amid this volatility. Bitcoin has dropped nearly 10% year-to-date, underperforming the S&P 500’s 4.6% decline.

Other major cryptocurrencies followed Bitcoin’s modest gains. Ethereum fell 0.6% to $1,866, hovering near a three-year low, while Solana, Cardano, and XRP inched higher. Dogecoin jumped 3.3%, and $TRUMP surged 4.2%.

Investors now await Producer Price Index (PPI) data later Thursday for further inflation insights. The Federal Reserve is expected to keep rates steady in its upcoming meeting amid persistent economic uncertainty.