Bitcoin Surges Back Above $88K as Risk Markets Stage Comeback
After dipping to an intraday low of $81,500, Bitcoin (BTC) has staged an impressive rebound, climbing nearly 10% to trade above $88,000. Stocks followed suit, with the Nasdaq erasing early losses to turn positive, up 0.7%, while the S&P 500 cut its declines to just 0.25%.
The sharp recovery comes after a rocky start to the day, as markets initially slumped following the official implementation of President Trump’s 25% tariffs on imports from Mexico, Canada, and China. The uncertainty weighed on risk assets, but dip-buyers stepped in to spark a turnaround.
Crypto and Equity Markets Regain Footing
Bitcoin’s recent price action has been a rollercoaster. After dropping more than 20% from its $109,000 high to a low of $78,000 last week, BTC rebounded past $95,000 before tumbling again yesterday. Today’s bounce suggests buyers are still willing to step in at lower levels.
Meanwhile, crypto-related equities are seeing renewed strength. MicroStrategy (MSTR) has surged 11%, Coinbase (COIN) is up 4%, and Marathon Digital (MARA) is posting a 5% gain.
Rate Cut Bets Strengthen as Treasury Yields Decline
The market downturn in recent weeks has fueled expectations of Federal Reserve intervention. While rate cuts were previously seen as unlikely in 2025, recent economic data and trade-related uncertainty have changed the outlook.
Traders are now fully pricing in at least three Fed rate cuts this year, with the first possibly arriving by May. The 10-year Treasury yield has tumbled from 4.80% at Trump’s inauguration to 4.15%, reflecting growing hopes for looser monetary policy.
