Bitcoin Rebounds Above $88K as Markets Stage Turnaround
Bitcoin (BTC) surged past $88,000 on Tuesday after briefly dipping to a session low of $81,500, marking a sharp intraday recovery amid a broader market rebound.
Risk assets staged a strong reversal, with Bitcoin climbing nearly 10% from its lowest point and the Nasdaq erasing early losses to trade in positive territory. Equities and crypto initially faced selling pressure as the U.S. officially imposed 25% tariffs on Mexico, Canada, and China. However, late-morning dip-buying helped drive a recovery across markets.
As of late afternoon trading, the Nasdaq is up 0.7%, while the S&P 500 has pared its earlier decline to just 0.25%. Bitcoin now sits 1.5% higher over the past 24 hours at $88,000, though Ether (ETH) remains stagnant at $2,171.
Volatility Continues for Bitcoin
Bitcoin’s rollercoaster price action over the past 10 days has seen it swing from a 20% drop between Feb. 21 and Feb. 27—bottoming near $78,000—to a sharp recovery above $95,000, only to slide again to the $81,000 range before today’s bounce.
Crypto-related stocks also posted solid gains, with MicroStrategy (MSTR) surging 11%, Coinbase (COIN) rising 4%, and Marathon Digital Holdings (MARA) climbing 5%.
Rate Cut Hopes Build
While risk assets have faced intense pressure in recent weeks, the market downturn may be laying the groundwork for a rebound.
Just a few weeks ago, traders had largely dismissed the likelihood of Federal Reserve rate cuts in 2025. However, tariffs, soft economic data, and recent market weakness have shifted expectations. Interest rate futures now fully price in at least three Fed rate cuts this year, with the first potentially arriving as early as May.
Meanwhile, bond markets have reacted swiftly, with the 10-year Treasury yield dropping to 4.15%, down from 4.80% when Trump took office six weeks ago.
