Bitcoin Price Rallies. Why Trump, Fed and China Are Boosting the Crypto.

By Elsa OhlenBitcoin pushed through $93,000 late Tuesday amid cautious optimism around de-escalation of U.S.-China trade tensions.Reassurances from President Donald Trump that he has no plans to fire Federal Reserve Chair Jerome Powell also boosted cryptos and broader market sentiment.The world's foremost cryptocurrency, Bitcoin, is up 5.6% to $93,473 over the last 24 hours, according to CoinDesk data. The recent rally started late Sunday, helped by a falling dollar. Bitcoin is now trading at its highest level since early March."The main drivers behind this rally were the dovish comments from U.S. President Donald Trump regarding trade tariffs, as well as his statement that he has no intention of dismissing Federal Reserve Chair Jerome Powell," said XS.com analyst Linh Tran.After weeks of escalating trade tensions and tit-for-tat tariffs between the two largest economies in the world, Trump's latest comments eased investor concerns that have led stock markets to plummet. The benchmark S&P 500 is down almost 7% since Trump announced sweeping reciprocal tariffs on "Liberation Day" April 2. Futures tracking the index were up 2.3% early Wednesday.Among altcoins, Ether soared 9.6%, XRP rose 7.4% and Solana climbed 8.2%."We're clearly in a Bitcoin season," analysts at crypto firm B2BINPAY said Wednesday. If the price manages to break through levels in the high $90,000s, it could mean Bitcoin is headed for an all-time high, they added.However, Bitcoin dominance is currently very high, meaning that if it drops even slightly from here, the altcoin market could face a much sharper decline, the analysts said. "In this scenario, caution is warranted — it's like walking on thin ice."Write to Elsa Ohlen at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.