Bitcoin Surges 10% To $84,000 After Trump's Tariff Reversal

Bitcoin's price surged past $84,000 following a significant policy reversal by Donald Trump, who unexpectedly rolled back sweeping global tariff plans. This move triggered a strong rally, with Bitcoin reclaiming the $84,000 level within hours. The surge was driven by a combination of factors, including the easing of investor fears about a potential global trade war and the validation of earlier predictions by analysts that economic uncertainty could present an attractive entry point for long-term investors.

The rally was particularly notable as it marked Bitcoin's strongest daily gain since March. This price action was mirrored by other top altcoins, including Ethereum, XRP, Cardano, Solana, and Dogecoin, which also saw double-digit gains. The market's swift response to the policy change underscored the sensitivity of cryptocurrency prices to macroeconomic events and policy shifts.

Despite the bullish momentum, Bitcoin faces a critical resistance level at $88,800, which was the high recorded on April 2. This level is seen as a significant barrier to Bitcoin's next milestone at $100,000. According to analysts, if Bitcoin fails to break through this resistance level, it may consolidate in the short term around $80,000. This consolidation phase would allow the market to digest the recent gains and potentially set the stage for a more sustained upward movement.

The recent volatility in Bitcoin's price has also been reflected in the on-chain data. Binance, one of the largest cryptocurrency exchanges, recorded over 16,000 BTC deposits during the period of market turbulence. This influx of deposits suggests that traders are positioning themselves for short-term opportunities and are prepared to react to further volatility. The elevated deposits on Binance indicate that a significant portion of active investors are primed to respond to short-term triggers, which could amplify market volatility in the near term.

The market's reaction to the policy reversal aligns with the predictions made by analysts earlier in the week. The swift rebound in Bitcoin's price and the broader market's bullish sentiment validate the view that economic uncertainty can create attractive entry points for long-term investors. However, the path to $100,000 remains uncertain, as Bitcoin must overcome the $88,800 resistance level with strong support to turn this milestone into a reality.

In the short term, the market is also awaiting key economic data releases, including inflation figures from major economies. A dovish reading of these data points could provide further confirmation of the bullish thesis and reinvigorate market sentiment. Conversely, hawkish surprises could shift monetary policy outlooks and prompt a market-wide pivot toward risk-off assets, potentially leading to a retracement in Bitcoin's price.

Overall, while the short-term outlook for Bitcoin has improved, the cryptocurrency must overcome significant resistance levels to achieve its next major milestone. The market's reaction to recent events underscores the importance of macroeconomic factors in driving cryptocurrency prices and highlights the need for investors to remain vigilant in the face of ongoing volatility.