Bitcoin (BTC) rebounded to just under $110,000 on Monday after a turbulent weekend sell-off triggered by U.S. President Donald Trump’s abrupt tariff threats on the European Union (EU). This sudden announcement sent shockwaves through the financial markets, but a temporary easing in trade tensions helped recover the digital asset.
Following the tariff announcement, Trump extended the deadline for the proposed 50% tariffs on European imports to July 9. This gesture seemed to have calmed fears, contributing to a recovery in digital assets. As the U.S. and European index futures moved higher ahead of the weekly open, it was evident that the markets were looking for stability.
Amidst this improving sentiment, both Cardano (ADA) and Dogecoin (DOGE) saw gains of up to 3% in the past 24 hours, leading the charge among the top ten tokens. This bounce reflects a broader relief across global risk assets. The U.S. and European equity futures gained over 1%, while the dollar weakened to multi-month lows, signaling a shift in investor sentiment toward riskier assets. Additionally, demand for traditional safe havens like gold and Treasuries dipped slightly.
Over the weekend, Bitcoin had experienced a sharp decline, plummeting from above $111,000 to as low as $108,600. This drop was directly linked to President Trump’s threats of steep levies on EU goods, which included potential tariffs on Apple iPhones manufactured abroad. The ensuing risk-off sentiment wiped out over $500 million in long liquidations across the crypto market. Futures tied to major cryptocurrencies, including Bitcoin, Ether (ETH), Cardano, Solana (SOL), and Dogecoin all faced significant losses.
However, the tone shifted dramatically early on Monday. Jeff Mei, COO at BTSE, observed that the weekend’s dip underscored the volatility of the cryptocurrency market, demonstrating how quickly it can react to macroeconomic shocks. “On one hand, this past weekend’s dip showed us how quickly crypto can fall from macro shocks,” Mei remarked in a Telegram message. “On the other, the speedy extension of tariff deadlines reinforces the belief that the worst is over. Traders are cautiously accumulating again,” he added.
As optimism starts to creep back into the market, options flows indicate a renewed demand for higher exposure. In a broadcast message on Saturday, Singapore-based QCP Capital reported that 1,000 contracts of the September 130K BTC call were quickly acquired, suggesting increased confidence in the market’s future.
The firm also pointed out a “constructive medium-term setup,” citing consistent ETF inflows, regulatory progress in the U.S., and ongoing institutional demand, highlighted by Strategy’s impressive $2.1 billion raise for additional Bitcoin purchases. This indicates a growing belief among investors in the long-term potential of Bitcoin and other cryptocurrencies.
As the markets adjust to the latest economic developments, it will be essential to monitor how these factors continue to influence Bitcoin and the broader cryptocurrency market in the coming weeks.
