Bitcoin has clawed its way back to near the $110,000 mark today, following a tumultuous weekend sell-off ignited by U.S. President Donald Trump’s unexpected tariff threats against the European Union. This rebound comes as a collective sigh of relief resonates across global markets with the temporary easing of trade tensions.
Markets Rebound Amidst Tariff Turmoil
The sell-off over the weekend saw Bitcoin nosedive from over $111,000 to a low of $108,600, as Trump’s abrupt announcement of potential 50% tariffs on European imports sent shockwaves through the financial landscape. The reverberations were felt widely, with over $500 million in long positions liquidated across the cryptocurrency spectrum, affecting not only Bitcoin but also Ethereum, Cardano’s ADA, Solana, and Dogecoin. This follows a pattern of optimism seen earlier when Bitcoin jumped above $97K as traders were optimistic about a U.S.-China trade deal.
However, the tide turned with Monday’s dawn. Trump’s decision to extend the tariff deadline to July 9 provided a temporary cushion for markets, sparking a rally in digital and traditional assets alike. U.S. and European index futures climbed over 1%, while the dollar slipped to multi-month lows. Safe havens like gold saw a dip in demand—a classic sign of easing market jitters.
Jeff Mei, COO at BTSE, in a Telegram message, encapsulated the mood: “This past weekend’s dip showed us how quickly crypto can fall from macro shocks. But the speedy extension of tariff deadlines reinforces the belief that the worst is over. Traders are cautiously accumulating again.”
Altcoins Lead the Charge
While Bitcoin’s recovery was noteworthy, it was Cardano’s ADA and Dogecoin that stole the spotlight among the top ten tokens, each posting gains of up to 3% in the last 24 hours. This uptick underscores a broader resurgence in risk appetite, with investors seemingly unfazed by the weekend’s volatility.
The broader crypto market’s resilience is exemplified by the renewed demand for options. Singapore-based QCP Capital highlighted this shift in sentiment, noting an increased appetite for topside exposure. “We saw 1,000 contracts of the September 130K BTC call being snapped up,” a representative from the firm shared, pointing to a “constructive medium-term setup.” This optimism is bolstered by persistent ETF inflows and regulatory progress in the U.S., alongside institutional interest, as evidenced by Strategy’s recent $2.1 billion bitcoin investment. For more on the potential for Bitcoin to reach new highs, see our recent coverage on how Bitcoin traders are eyeing a breakout as tariff deals progress.
A Cautiously Optimistic Outlook
Despite the recent recovery, questions linger about the sustainability of this uptrend. While the market appears to have shrugged off the immediate threats, the shadow of geopolitical uncertainties looms large. The upcoming deadline for the proposed tariffs hangs like a Damoclean sword over the markets.
Moreover, the crypto market’s notoriously fickle nature means traders remain on edge. The past weekend served as a stark reminder of the sector’s vulnerability to macroeconomic tremors. Yet, the current rally suggests a resilient undercurrent, buoyed by structural factors like institutional interest and increasing mainstream adoption.
As we look to the months ahead, the focus will likely remain on geopolitical developments and their impact on market sentiment. While the present moment offers a semblance of stability, the path ahead is anything but clear. Investors and traders would do well to keep their ears to the ground and their strategies nimble.
In conclusion, while Bitcoin and its compatriots have shown remarkable resilience in the face of adversity, the crypto landscape remains as unpredictable as ever. The coming weeks will provide a clearer picture of whether this rally has legs or if we’re merely witnessing a temporary respite in an ongoing saga of volatility.
Source
This article is based on: Bitcoin Regains $110K After Weekend Sell-Off; ADA, DOGE Lead Uptick in Crypto Majors
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
