Bitcoin gained ground on Wednesday on track for the fifth profit in a row, hitting eight-week highs and on track to test the psychological barrier of $100,000.

It comes amid an upbeat sentiment in the global financial markets after positive Trump remarks about Jerome Powell and China.

The Price

Bitcoin rose 1.1% at Bitstamp today to $94,510, the highest since March 2, with a session-low at $92,657.

On Tuesday, bitcoin rallied 7%, the fourth profit in a row and the largest since April 9 as major corporations announce new bitcoin purchases.

US assets rebounded strongly on Tuesday with stock indices rallying and the dollar index rebounding from three-year lows after assurances from President Trump.

Trump’s Reassurances 

US President Donald Trump assured the markets he doesn’t intend to fire Fed Chair Jerome Powell despite his disappointment from the slow pace of policy easing.

Trump told reporters in the White House that he never tried to fire him, but he would like to see him more active about interest rate cuts.

It comes after a series of heavy Trump attacks against  Powell on social media, calling him a big loser and asserting his authority to fire him.

Gold prices fell in European trade on Wednesday, extending the losses for the second straight session and backing off a record high at $3500 on profit-taking.

It comes as haven demand slows down amid a rebound in global financial markets following assurances by US President Donald Trump on Powell and China. 

The Price

Gold prices fell 2.15% today to $3308 an ounce, with a session-high at $3386.

On Tuesday, gold lost 1.3% away from a recent record high at $3500.

Global Markets 

US assets rebounded strongly on Tuesday with stock indices rallying and the dollar index rebounding from three-year lows after assurances from President Trump.

Trump’s Reassurances 

US President Donald Trump assured the markets he doesn’t intend to fire Fed Chair Jerome Powell despite his disappointment from the slow pace of policy easing.

Trump told reporters in the White House that he never tried to fire him, but he would like to see him more active about interest rate cuts.

It comes after a series of heavy Trump attacks against  Powell on social media, calling him a big loser and asserting his authority to fire him.

US Rates

Chicago Fed President Austin Goolsbey said he hopes the US won’t turn into an environment where the Fed’s ability to set monetary policies independently from political pressure is undermined.

According to the Fedwatch tool, the odds of a May Fed 0.25% rate cut stood at 7%.

The odds of such a cut in June stood at 62%.

SPDR

Gold holdings at the SPDR Gold Trust fell 4.59 tons yesterday to a total of 947.70 tons, the lowest since April 9.

The euro fell in European trade on Wednesday against a basket of major rivals, extending losses for the second straight session against the dollar and hitting a week trough, moving away from four-year highs on profit-taking.

Pressure on the dollar and US assets receded after President Trump’s assurances to the markets that he won’t fire Fed Chair Jerome Powell.

Now investors await important eurozone data later today, which would provide clues on the pace of growth in the second quarter, and the likely pace ahead of eurozone interest rate cuts.

The Price

The EUR/USD price fell 1% to $1.1307, the lowest in a week, with a session-high at $1.1425.

The pair closed down 0.8% on Tuesday, marking the first loss in three days on profit-taking away from a four-year high at $1.1573.

US Assets

US assets rebounded strongly on Tuesday with stock indices rallying and the dollar index rebounding from three-year lows after assurances from President Trump.

Trump’s Reassurances 

US President Donald Trump assured the markets he doesn’t intend to fire Fed Chair Jerome Powell despite his disappointment from the slow pace of policy easing.

Trump told reporters in the White House that he never tried to fire him, but he would like to see him more active about interest rate cuts.

It comes after a series of heavy Trump attacks against  Powell on social media, calling him a big loser and asserting his authority to fire him.

Potential Trade Deals

Markets were boosted as investors bet the US will reach trade deals with China and other trade partners in the near future.

US Treasury Secretary Bessent said he expects a de-escalation in the trade war with China in the very near future, calling the current confrontation “unsustainable”.

Lagarde 

ECB President Christine Lagarde is scheduled to speak to CNBC later today and discuss the latest developments in the eurozone and the US tariff crisis.

Last week, Lagarde said that tariffs represent a shock, but their impact on inflation remains unclear.

She said the picture might not become clear by the next policy meeting in June, as the 90-day pause on tariffs would still be in place by then.

European Rates

Reports showed that some ECB officials see a high probability of a rate cut in June.

Markets are pricing in a 60% chance of an ECB rate cut in June.

The Japanese yen fell in Asian trade on Wednesday against a basket of major rivals, extending losses for the second straight session against the dollar  and plumbing a week low, and backing off from seven-month highs on profit-taking.

It comes amid a strong recovery wave in the global markets as US President Donald Trump backs off his threats to fire Fed Chair Jerome Powell, restoring investor confidence. 

Recent remarks by US Treasury Secretary Scottt Bessent also boosted optimism about reaching trade agreements with major partners, including China, in the near future.

The Price

The USD/JPY price rose 1.2% today to 143.22 yen per dollar, a week high, with a session-high at 141.45.

The yen lost 0.5% on Tuesday against the dollar, marking the first loss in three days on profit-taking away from seven-month highs at 139.88.

Trump’s Reassurances 

US President Donald Trump assured the markets he doesn’t intend to fire Fed Chair Jerome Powell despite his disappointment from the slow pace of policy easing.

Trump told reporters in the White House that he never tried to fire him, but he would like to see him more active about interest rate cuts.

It comes after a series of heavy Trump attacks against  Powell on social media, calling him a big loser and asserting his authority to fire him.

Potential Trade Deals

Markets were boosted as investors bet the US will reach trade deals with China and other trade partners in the near future.

US Treasury Secretary Bessent said he expects a de-escalation in the trade war with China in the very near future, calling the current confrontation “unsustainable”.