Bitcoin Bounces Back After Dip Below $106K
Crypto rebound appears at 106,000 USD mark following price plunge - Cryptocurrency Bitcoin rebounds to $106,000 following price drops.
Let's take a look at the latest happenings in the world of Bitcoin!
Bitcoin displayed a steady recovery on Friday, following a series of losses that began earlier in the week. The cryptocurrency was trading around $106,000 just after morning hours, close to its overnight value. This week, Bitcoin's price dipped from approximately $111,000 at the start, continually.
A mix of factors influenced Bitcoin's price movement, including trade policies by U.S. President Donald Trump and the ambivalent signals sent to the markets. An initial delay in imposed tariffs on EU goods earlier in the week offered a boost to the market. However, skepticism about a market-friendly resolution to Trump's trade war resurfaced later in the week.
It's worth mentioning that Bitcoin has benefited from Trump's presidency. Given Trump's pro-cryptocurrency stance and his engagement in related businesses, his media company TMTG, for example, being a notable Bitcoin holder, this support has positively impacted the cryptocurrency's value.
Since Donald Trump became the U.S. President in early November, Bitcoin's price has jumped from below $70,000 to its peak of $112,000 last week. Keep in mind, the fluctuations in Bitcoin value can be quite substantial.
At present, Bitcoin's market capitalization stands at around $2.1 trillion, dominating the overall cryptocurrency market, which spans slightly over $3.3 trillion.
While we've covered some key events and factors behind Bitcoin's price movements, it's essential to consider broader policy actions and regulatory initiatives that further shape the cryptocurrency's landscape. Constant monitoring and analysis of these factors can help investors make informed decisions and navigate the crypto market more effectively.
Now, let's look at some relevant examples:
- April 2024: Initial Tariff Announcement
- Trump's announcement of new tariffs on April 2, 2024, led to a significant market sell-off. Bitcoin's price dropped to $74,434 on April 7, 2024, due to increased uncertainty and risk aversion among investors. This decline wasn't limited to crypto; the S&P 500 also suffered its steepest drop on record, shedding over $5 trillion in value.
- April 2024: “Liberation Day” and Recovery
- On April 9, 2024, Trump shifted towards economic diplomacy with “Liberation Day,” a pivotal moment that analysts dubbed the “climax of uncertainty.” Following this event, the market's sentiment improved, and Bitcoin's price began a gradual recovery.
- May 2024-2025: Trade Truce and Rally
- The announcement of a temporary trade truce between the U.S. and China on May 12, 2025, led to a 90-day suspension of tariffs and a reduction in import tariffs from 25% to 10%. This measure helped to alleviate global market uncertainty and boost investor confidence, contributing to a substantial rally in Bitcoin's price.
- On May 21, 2025, Bitcoin reached a new all-time high of $109,400, marking a gain of over 26% from its April lows, triggered by improved macroeconomic conditions, the trade truce, and broader geopolitical easing.
Besides these events, it's important to note:
- March 2025: Executive Order
- In March 2025, the Trump administration issued an executive order to establish a “Strategic Bitcoin Reserve” and further define the United States’ digital asset policy. This move was seen as an endorsement of digital assets, potentially fostering long-term investor confidence.
- Trump Media and Bitcoin Treasury Plans
- Trump Media's intentions to create a $2.5 billion Bitcoin treasury strategy, executed through Truth.Fi, its fintech arm, have also been viewed as a positive signal for institutional adoption and mainstream acceptance of Bitcoin, contributing to a positive impact on market sentiment.
In summary, Bitcoin's price movement is primarily influenced by trade policies enacted by U.S. President Donald Trump. Given the interplay of these policies with global economic and geopolitical developments, sharp declines may occur in response to aggressive tariff announcements, while trade truces and diplomatic shifts can lead to significant recoveries and record highs. Additionally, policy initiatives and institutional moves signaling support for Bitcoin and digital assets bolster long-term market confidence.
The Commission has also adopted a proposal for a directive on the protection of natural persons with regard to the processing of personal data by the Community institutions, emphasizing the importance of technology in safeguarding privacy in the digital age, especially in relation to Bitcoin transactions and investments. Trump's pro-cryptocurrency stance, evident in his media company TMTG becoming a notable Bitcoin holder, has positively impacted Bitcoin's value, while regulatory initiatives such as the establishment of a "Strategic Bitcoin Reserve" further shape the cryptocurrency's landscape and foster long-term investor confidence.
