Bitcoin Rebounds 2% After Trump Tariffs Spark Volatility

Bitcoin (BTC) has shown signs of recovery after experiencing significant volatility over the weekend. The cryptocurrency plummeted to a low of $74,389 on Monday, a level not seen since November 2024, due to the impact of Donald Trump’s tariffs on global markets. However, BTC has since rebounded and is currently trading at $79,850, up almost 2% over the past 24 hours, as it attempts to reclaim the $80,000 mark.

The broader crypto market also saw a rebound on Tuesday, reflecting a shift in investor risk appetite. Treasury yields rose from six-month lows, gold prices decreased, and oil prices bounced back from four-year lows. This shift led traders to move out of safe-haven assets and into riskier assets, including cryptocurrencies. Alankar Saxena, Co-founder and CTO at Mudrex, noted that the crypto market is showing early signs of recovery, led by Bitcoin, Ethereum, and Solana. He also mentioned that if global trade tensions ease and macro data such as U.S. inflation comes in softer, it could further support this rebound.

BTC’s recovery also dragged altcoins back up from multi-month lows. Solana (SOL) reclaimed $100 and moved to $110 after an increase of over 9%, while Ethereum (ETH) reclaimed $1,500 after dropping to a low of $1,412. Vikram Subburaj, CEO of Giottus, stated that altcoins are bouncing back as well, with Solana, Cardano, and Avalanche showing strong upward momentum. However, he cautioned that the market remains highly sensitive to developments around U.S. tariffs.

Despite the recovery, the Crypto Fear & Greed Index remained rooted in the “Extreme Fear” zone, indicating investor caution. BTC attempted to rally earlier on Tuesday, reaching a day high of $80,875. However, it lost the gains made earlier in the day and dipped below $80,000. The flagship cryptocurrency is struggling to push beyond $80,000. Crypto analyst Michael van de Poppe believes it's only a matter of time before BTC surges past this level. According to Poppe, BTC’s return to $79,000-$80,000 demonstrates strength and resilience. The analyst added that even if BTC fails to reclaim $80,000 in the short term, he envisions it taking significantly higher levels this year.

BTC registered a drop of 0.36% last Sunday to end the weekend in the red. However, it registered a marginal increase on Monday and then rose over 3% on Tuesday to move past the 20-day SMA and $85,000 and settle at $85,152. BTC raced to an intraday high of $88,624 on Wednesday as markets rallied. However, it lost momentum after reaching this level and fell over 3%, slipping below the 20-day SMA and $85,000 and settling at $82,525. BTC recovered on Thursday, rising almost 1% to $83,199. Buyers retained control on Friday, with the price registering an increase of 0.76% and settling at $83,828.

However, price action turned bearish over the weekend as BTC dropped 0.48% on Saturday and settled at $83,423. Bearish sentiment intensified on Sunday as markets tanked. As a result, BTC plunged over 6%, slipping below $80,000 and settling at $78,301. The price encountered significant volatility on Monday as uncertainty about tariffs led to wild price swings. As a result, BTC fell to a low of $74,389 and surged past $80,000 before settling at $79,164. The current session sees BTC down almost 1% as it struggles to push above $80,000 despite a strong recovery. The MACD indicates that bears have the upper hand. As a result, we could see a decline in the short term.