The crypto market is making a strong comeback after last week’s sharp downturn, which saw nearly $400 billion wiped out in a single day. Bitcoin (BTC), which briefly dipped below $90,000, has rebounded past $101,000, bringing relief to investors. Meanwhile, Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) have all posted impressive 10%-20% gains.
What’s Driving the Crypto Recovery?
🔹 Trump’s Tariff Pause Eases Market Fears
Last week’s market dip was largely triggered by Trump’s announcement of new tariffs—25% on Canada & Mexico and 10% on China—which created uncertainty across global markets, including crypto.
However, things took a turn when Trump temporarily paused these tariff plans after reaching agreements with Mexico and Canada to enhance border security.
✔️ Mexico agreed to deploy 10,000 National Guard troops to strengthen border control.
✔️ Canada proposed a $1.3 billion security plan, including appointing a Fentanyl czar and increasing surveillance.
With these deals in place and talks still ongoing, investor confidence quickly improved, sparking a crypto rally.
🔹 Big Investors Bought the Dip
Institutional investors saw Bitcoin’s drop as a buying opportunity. CryptoQuant’s Coinbase Premium Gap—a key indicator of U.S. institutional demand—turned positive (+103.6), signaling heavy accumulation.
🔹 Market Sentiment is Improving
As Bitcoin climbed back above $102,000 and Ethereum recovered from $2,251 to $2,827, the Crypto Fear & Greed Index also moved up to 45 (neutral), reflecting renewed optimism among traders.
What’s Next for Crypto?
With the tariff situation still uncertain and institutional buyers stepping in, volatility remains high. If Bitcoin continues to hold above $100K, we could see further upside momentum. But if trade tensions resurface, another pullback could be on the horizon.
For now, the market is breathing easier, and investors are watching key price levels closely.
