Bitcoin's meteoric rise to $87,500 sparks hopes of sustained growth amid tariff flexibility, ETF inflows, and Fed rate cuts.

Bitcoin Soars to $87,500 as Trump Signals Tariff Flexibility, Will ETF Inflows, Fed Rate Cuts and Institutional Demand Push it Even Higher

Washington: Bitcoin prices surged to a record high of $87,500 on Friday, as US President Donald Trump's comments on tariff flexibility, expectations of ETF inflows, Fed rate cuts and institutional demand pushed the cryptocurrency even higher.

The digital currency, which has been gaining traction in recent months, saw its value jump by over 10% in a single day, as investors and traders continued to pile in, driven by a combination of factors.

One of the key catalysts for the surge was Trump's comments on tariff flexibility, which sparked hopes that a trade deal with China could be reached, boosting market sentiment. The President's comments also sparked a rally in other assets, including stocks and commodities.

Another key factor driving the surge was the expected inflows from ETFs (Exchange-Traded Funds), which are designed to track the performance of the cryptocurrency. The approval of the first Bitcoin ETF by the US Securities and Exchange Commission (SEC) is expected to boost demand for the digital currency.

In addition, the Federal Reserve's decision to cut interest rates for the first time in over a decade has also contributed to the surge, as investors seek alternative assets to traditional stocks and bonds.

Finally, institutional demand for Bitcoin has been growing in recent months, as more mainstream investors and traders look to diversify their portfolios and hedge against market volatility.

The surge in Bitcoin prices has also been driven by the growing adoption of the cryptocurrency by mainstream consumers, with more and more people looking to use it for everyday transactions.

The surge in Bitcoin prices has also sparked concerns about the potential impact on the global economy, with some experts warning that the rapid appreciation of the digital currency could lead to increased speculation and market volatility.

However, many experts believe that the surge in Bitcoin prices is a sign of the growing mainstream acceptance of the digital currency, and that it has the potential to become a major player in the global financial system.