Bitcoin Reaches $80,000 After 10% Rebound From Trump Tariff Fears

Bitcoin's price experienced a significant rebound, reaching $80,000 after a sharp decline triggered by concerns over US President Donald Trump’s tariff policies. This price fluctuation led to panic selling across the cryptocurrency market over the past 12 hours, as economic fears spread across various sectors.

Despite recent price volatility, Bitcoin’s market capitalization remains stable at $1.5 trillion. While Bitcoin has shown some recovery, altcoins continue to face deeper losses. Bitcoin’s dominance in the overall crypto market has increased to 60%, suggesting that investors are seeking refuge in the largest digital asset during times of uncertainty.

Market analysts attribute the recent market movements to broader economic fears rather than issues specific to the cryptocurrency sector. The market's response indicates a shift in investor sentiment towards more stable assets like Bitcoin.

According to data from Glassnode, Bitcoin futures open interest has fallen to $34.5 billion, showing a brief recovery from its April 3 low of $33.8 billion. However, the overall trend remains downward as traders reduce their futures exposure in response to declining price momentum. Since March 25, cash-margined open interest has declined from $30 billion to $27 billion, while crypto-margined open interest fell from $7.5 billion to $6.9 billion during the same period. More recent figures indicate that crypto-margined open interest has started to rise again, suggesting that some traders are moving back into riskier positions.

The share of crypto-collateralized futures contracts has reached 21% of open interest, up from 19% on April 5. This change may make the market more responsive to price shifts, potentially leading to increased volatility in the coming days.

In the last 24 hours, $58 million worth of Bitcoin futures liquidations occurred, with longs taking $42 million versus shorts taking $16.6 million. Market watchers note that this liquidation figure is relatively low considering the 10% price decline in Bitcoin, indicating that the market was not highly leveraged prior to the selloff. Long liquidations accounted for approximately 73% of total futures liquidations, suggesting a mildly bullish sentiment before the correction. These numbers are significantly lower than previous market events in February and March, when daily liquidations topped $140 million. The current trend indicates a structured price fall driven primarily by spot selling rather than forced liquidations due to over-leveraged positions.

Despite recent market volatility, there are reports of increased institutional demand for Bitcoin. Statistics reveal that 76 new institutions with over 1,000 BTC have entered the network in the last two months, representing a 4.5% rise in large Bitcoin holders. This influx of institutional investors suggests continued confidence in Bitcoin as a valuable asset, even amidst market fluctuations.