Bitcoin Pulls Back After 7-Week High Amid Trade Optimism, Altcoins Also Slide

Bitcoin prices dipped on Thursday as traders took profits following a sharp rally, even as easing U.S.-China trade tensions continued to support risk sentiment. The leading cryptocurrency dropped 1.2% to $92,575.3 by 06:35 GMT, after surging nearly 7% to over $94,000 on Wednesday—its highest level since early March.

The rally was fueled by optimism over a potential thaw in trade relations. U.S. President Donald Trump eased pressure on Federal Reserve Chair Jerome Powell and signaled a willingness to lower tariffs on Chinese imports, boosting hopes for a more stable economic outlook. U.S. Treasury Secretary Scott Bessent reinforced this view, stating that high tariffs were unsustainable. Adding to the positive sentiment, Japan’s Economy Minister Ryosei Akazawa is scheduled to meet U.S. officials for a second round of tariff talks from April 30 to May 2.

These developments boosted investor appetite for risk assets, with Bitcoin briefly surpassing Alphabet (NASDAQ:GOOGL) on Wednesday to become the fifth-largest asset globally by market capitalization, hitting $1.87 trillion. However, Thursday’s retreat pushed it back to the eighth spot, just below silver.

Altcoins mirrored Bitcoin’s movement, giving up gains from the previous session. Ethereum (ETH) fell 0.8% to $1,774.93, while XRP dropped 2.8% to $2.1801. Solana (SOL) and Cardano (ADA) slipped 1.3% and 1% respectively, and Polygon (MATIC) edged down 0.5%. Dogecoin (DOGE), the top meme coin, saw a sharper 4% decline.

Despite the pullback, sentiment in the crypto market remains buoyed by improving macroeconomic signals and ongoing institutional interest.