Investing.com-- Bitcoin climbed on Wednesday to recover recent losses, although gains remained limited amid persistent risk aversion due to concerns over U.S. trade tariffs and slowing economic growth.
The modest increase follows lower-than-expected February inflation data, a development that typically supports risk-on sentiment.
Bitcoin rose 1% to $82,089.1 by 1:06 ET (17:06 GMT).
Broader crypto prices were also muted after clocking heavy losses in the past two weeks, with few positive signals for the sector.
Trump tariff jitters, recession concerns quell crypto appetite
Trump’s increased, 25% tariffs on steel and aluminum imports took effect from Wednesday, drawing retaliatory measures from the European Union and Canada. The tariffs come just after the president backed off from a threat to impose 50% tariffs on Canadian imports.
But his flip-flopping on the tariffs, along with his exemptions for key import sectors in Canada and Mexico, ramped up uncertainty over the economy.
Trump defended his tariff decisions, and said that he did not see the possibility of a recession. U.S. Commerce Secretary Howard Lutnick said that risking a recession would be “worth it” to enact Trump’s agenda.
But markets remained on edge over more economic headwinds, especially amid concerns that Trump’s tariffs could underpin U.S. inflation and dent growth.
U.S. stock markets clocked an extended rout in recent weeks, which spilled over heavily into crypto markets. Speculative assets such as crypto tend to be sold in times of increased volatility and risk aversion.
Trump’s recent announcement of a Bitcoin reserve also did little to enthuse markets, given that the reserve will not involve any new crypto purchases.
Inflation rate cooled in February
On a more positive note, inflation rose less than expected in February, offering some relief amid concerns that tariffs could drive prices higher.
The consumer price index (CPI) increased 0.2% for the month, bringing the annual inflation rate to 2.8%, according to the Bureau of Labor Statistics. That marks a slowdown from January’s 0.5% monthly gain.
Core CPI, which excludes food and energy, also climbed 0.2% in February, with the annual rate easing to 3.1%—the lowest since April 2021. In January, core prices had risen 0.4%.
Both figures came in below economists’ expectations, who had projected 0.3% increases for both measures, with annual rates of 2.9% for headline inflation and 3.2% for core inflation.
Crypto price today: altcoins tick higher but gains remain limited
Broader crypto prices moved in a tight range after logging heavy losses over the past two weeks. Bitcoin and other cryptos have now effectively wiped out all gains made since Trump’s November election victory, and are also trading well below record highs hit in January.
World no.2 crypto Ether slipped 1.4% to $1,878.23, remaining at an over three-year low. The ongoing sluggishness in eth comes as a major upgrade for the ethereum continues to hit snag.
In contrast, XRP, Cardano, and Solana rose between 1% and 5%.
Among meme tokens, Dogecoin rose over 4%, while $TRUMP fell 0.1%.
Ambar Warrick contributed to this report.