Bitcoin Sees Modest Gains Amid Russia-Ukraine Peace Talks, Inflation Concerns Linger

Bitcoin Sees Modest Gains Amid Russia-Ukraine Peace Talks, Inflation Concerns Linger

Bitcoin rose slightly on Thursday, tracking broader gains in risk-driven markets amid optimism over potential peace talks between Russia and Ukraine. The cryptocurrency climbed 0.9% to $96,682.0 by early Thursday, though gains were capped by concerns over sticky U.S. inflation.

Broader Crypto Markets Rally, Altcoins Show Mixed Performance

The broader crypto market saw a mixed performance, with altcoins showing varying degrees of movement. Ether rose 4.2% to $2,717.81, while XRP gained 2.8% to $2.4660. Solana dipped 0.2%, while Cardano and Polygon advanced 1.5% and 4.4%, respectively. Memecoins also saw gains, with Dogecoin up 3.2% and $TRUMP rising 1.1%.

Goldman Sachs Boosts Bitcoin and Ether ETF Holdings

Goldman Sachs significantly increased its holdings of Bitcoin and Ether exchange-traded funds (ETFs) in the fourth quarter of 2024. The bank raised its Ether ETF holdings by 2000% to $476 million and its Bitcoin ETF portfolio by 114% to $1.52 billion. This move reflects growing optimism over friendlier crypto regulations under the Trump administration.

Inflation Concerns and Trade Tariffs Weigh on Crypto Gains

Despite the positive momentum, crypto markets faced headwinds from sticky U.S. inflation and higher trade tariffs. The consumer price index (CPI) data came in hotter than expected, prompting Federal Reserve Chair Jerome Powell to signal a delay in interest rate cuts. Additionally, President Trump's imposition of steep trade tariffs on metal imports and threats of further tariff actions dampened risk appetite.

Conclusion

While optimism over peace talks and increased institutional investment provided a bullish backdrop, inflation concerns and trade tensions continue to weigh on crypto markets. Investors remain cautious as they balance geopolitical optimism with economic uncertainties.