On Tuesday, a significant reversal unfolded in risk markets as Bitcoin (BTC) surged nearly 10% from its lowest point of the session, while the Nasdaq managed to rebound into positive territory after a near 2% decline earlier in the day.
The backdrop of this volatility has been punctuated by ongoing tariff threats from former President Trump, which have dampened market sentiment. As the tariffs against Mexico, Canada, and China officially came into effect, both stocks and cryptocurrencies initially experienced sharp declines.
However, as the U.S. morning progressed, dip buyers began to step in, changing the course of the day’s trading. With just over an hour left before the market closed, the Nasdaq had achieved a modest gain of 0.7% for the session, while the S&P 500 managed to reduce its earlier substantial loss to only 0.25%.
In the crypto space, Bitcoin is currently trading just above $88,000, marking a 1.5% increase over the past 24 hours. In contrast, Ether (ETH) has been stagnating, showing little change at approximately $2,171.
The day’s trading activity continues a tumultuous ten-day rollercoaster for Bitcoin, which witnessed a drastic plunge of over 20% in just six days following February 21, bottoming out just above $78,000. This decline was followed by a remarkable rebound, where Bitcoin soared by more than 20% to around $95,000 over three days, only to experience another drop in the last 24 hours to the $81,000 mark.
Additionally, a look at crypto-related equities reveals a positive trend, with Marathon Digital Holdings (MARA) gaining 5%, MicroStrategy (MSTR) climbing by 11%, and Coinbase (COIN) seeing a 4% uptick. This performance underscores the resilient connection between the movements in cryptocurrency and related stocks, particularly during periods of high volatility.
