Bitcoin surged sharply on Thursday, recovering from recent losses as risk appetite strengthened after U.S. President Donald Trump delayed his plans to impose high retaliatory tariffs.

However, overall gains were limited due to fears of a rapid escalation in the trade war between the United States and China, especially since Trump did not exempt China and raised tariffs on it, prompting Beijing to take retaliatory measures.

Cryptocurrency prices moved in tandem with the broader risk-driven markets, which rose since Wednesday evening after Trump's announcement of tariff exemptions.

However, Bitcoin's gains were less than those seen in stock and currency markets, with cryptocurrency markets also tense after Strategy, the largest corporate holder of Bitcoin in the world, reported a significant loss in the value of its digital assets.