Bitcoin Rebounds 2% to $110,000 as Trump Extends Tariff Deadline

Bitcoin rebounded to just under $110,000 on Monday after a tumultuous weekend sell-off triggered by U.S. President Donald Trump’s abrupt tariff threats on the European Union. The temporary easing in trade tensions contributed to a recovery in digital assets, as Trump extended the deadline for the proposed 50% tariffs on European imports to July 9. This extension led to a rise in U.S. and European index futures ahead of the weekly open.

Cardano’s ADA and Dogecoin led the gains among the top ten tokens, rising as much as 3% in the past 24 hours. This bounce reflects broader relief across global risk assets, with U.S. and European equity futures gaining over 1%, the dollar weakening to multi-month lows, and demand for safe havens like gold and Treasuries dipping slightly.

Over the weekend, bitcoin had plunged from above $111,000 to as low as $108,600 in response to Trump's threats of steep levies on EU goods and Apple iPhones manufactured abroad. The resulting risk-off sentiment erased over $500 million in long liquidations across the crypto market, with futures tied to bitcoin, ether, Cardano's ADA, Solana's SOL, and Dogecoin all taking heavy losses.

However, the tone shifted early Monday. The speedy extension of tariff deadlines reinforces the belief that the worst is over. Traders are cautiously accumulating again. Options flows suggest that optimism is creeping back in, with a renewed demand for topside exposure. A Singapore-based firm noted a “constructive medium-term setup,” citing persistent ETF inflows, regulatory progress in the U.S., and continued institutional demand.

Bitcoin has regained its momentum, surging past $110,000 after a weekend sell-off. This recovery follows a period of volatility where the price of Bitcoin fluctuated between $101,000 and $108,000, and briefly broke past $111,000. Despite these fluctuations, the funding rates did not mirror the same level of movement, indicating a stable underlying market sentiment.

The recent uptick in the crypto market is led by Cardano's ADA and Dogecoin, which have shown significant gains. Cardano's ADA has been particularly noteworthy, forming an ascending triangle on its 4-hour chart. This pattern suggests a potential breakout toward $0.81, $0.88, and $0.996 if the resistance at $0.74 to $0.76 is breached. Analysts are optimistic about ADA's prospects, citing historical patterns and current market conditions that favor a bullish outlook.

Dogecoin, on the other hand, has been gaining traction due to its historical bull flags, which have led to substantial price spikes in the past. The current setup suggests a potential surge to $0.95, representing a 560% gain from its recent low. The interest in Dogecoin has also been boosted by ETF filings from Nasdaq and Grayscale, which have lifted market sentiment and hint at a potential price surge.

The broader market trends also play a role in the recent gains. Many traders expect Ethereum to pick up steam once Bitcoin finishes its current run. With Bitcoin nearing all-time highs, capital might soon shift toward altcoins, benefiting both Cardano and Dogecoin. The coming days will be crucial in determining whether the current pullback leads to a larger correction or sets the stage for a bounce, as the market awaits the next significant move from these major cryptocurrencies.