Cryptocurrency prices experienced an uptick yesterday, buoyed by hopes for improved market performance following recent volatility linked to escalating global trade tensions.

Bitcoin rose by 0.49% to $83,542.88 during trading sessions, while Ethereum increased by 1.34% to $1,904.23. Other notable cryptocurrencies, including Ripple and Dogecoin, saw gains of 1.67% and 3%, reaching $2.3476 and $0.1743, respectively.

However, TrumpCoin, a meme-based token, declined by 4.13% to $11.37.

Despite the recent uptick, Bitcoin remains over 23% below its peak of $109,000, achieved on Inauguration Day in January.

This decline reflects a significant decrease, almost 30%, from the record high.

Market activity was influenced by a major Bitcoin investor, often referred to as a 'whale,' who executed a leveraged short sale bet totaling $368 million ahead of the upcoming Federal Reserve meeting.

The uncertainty stemming from tariff measures implemented by President Donald Trump, coupled with concerns over a potential government shutdown, has led to increased economic uncertainty and significant sell-offs across various asset classes, including cryptocurrencies.

Earlier in the week, Bitcoin had fallen to approximately $77,000, marking its lowest level since shortly after Trump's election in November.

This drop triggered a record outflow of cash from Bitcoin exchange-traded funds (ETFs) and contributed to a broad unwinding of long positions in cryptocurrency derivatives markets.

Traders in Bitcoin options had been speculating on a further decline to $70,000 by late February.

Despite a recent cryptocurrency leaders summit hosted by Trump at the White House, along with an executive order to establish a strategic Bitcoin reserve, these events did not significantly enhance Bitcoin prices.

Instead, investor attention appears focused on macroeconomic factors, such as U.S. inflation and continuing tariff implications.