Cryptocurrencies tilt higher even as risk sentiment wobbles
Most cryptocurrencies rallied on Wednesday as the risk appetite weakened in the market due to Trump’s trade wars.
US President Donald Trump ordered a full tariff review of US critical minerals imports in another escalation in his trade war with global trade partners.
Trump said that US reliance on mineral imports raise national security risks and hurt defense capabilities and price stability, hinting at potential tariffs at some of these imports.
Otherwise, Fed Chair Jerome Powell said that tariffs and the ongoing trade war between the US and the world, especially China, could weaken the Fed’s ability to contain inflation and boost US growth.
Powel expects inflation to rise and growth to slow down, but it’s still not clear which one of them needs more focus amid trade uncertainty.
Powell said the Fed is assuming a wait and see stance until the dust clears before taking a monetary policy decision.
He also expects the economy to move away from full employment and contained inflation targets due to the impact of tariffs.
Ethereum
On trading, ethereum tumbled 1.5% on Coinmarketcap as of 20:22 GMT to $1590.
Ripple
Ripple slipped 0.6% as of 20:22 GMT to $2.11
Solana
Solana surged 4.1% as of 20:22 GMT to $133.3.
Gold surges 3.5% as dollar tumbles after Powell's remarks
Gold prices rose on Wednesday as the dollar fell against most major rivals, and after Fed Chair Jerome Powell’s remarks on the trade war.
US President Donald Trump ordered a full tariff review of US critical minerals imports in another escalation in his trade war with global trade partners.
Trump said that US reliance on mineral imports raise national security risks and hurt defense capabilities and price stability, hinting at potential tariffs at some of these imports.
Otherwise, Fed Chair Jerome Powell said that tariffs and the ongoing trade war between the US and the world, especially China, could weaken the Fed’s ability to contain inflation and boost US growth.
Powel expects inflation to rise and growth to slow down, but it’s still not clear which one of them needs more focus amid trade uncertainty.
Powell said the Fed is assuming a wait and see stance until the dust clears before taking a monetary policy decision.
He also expects the economy to move away from full employment and contained inflation targets due to the impact of tariffs.
Separately, the dollar index fell 0.9% as of 19:50 GMT to 99.3, with a session-high at 100.1, and a low at 99.1.
On trading, gold spot prices rallied 3.5% as of 20:04 GMT to $3354.8 an ounce.
