After last week’s historic crash, fueled by President Trump’s unexpected 100% tariffs on Chinese imports that resulted in nearly $19 billion in liquidations, the crypto market is bouncing back sharply today. Bitcoin is leading the recovery, rising more than 3% to nearly $115,000, while Ethereum and other major tokens are also seeing a 10% to 20% recovery.
What’s behind this positive shift after such a brutal sell-off?
Reason behind the jump into the crypto market
This is the main reason behind the recovery of the current crypto market
Trump’s soothing words increase market sentiment
A major reason behind today’s rise is a surprisingly calm message from US President Donald Trump. In one Truth Social Posthe wrote: “Don’t worry about China, everything will be fine!”, signaling a softer tone towards China after last week’s tariff shock. This change in tone helped allay global fears and created new optimism among investors.
Traders quickly began ‘buying the dip’, believing that the worst tensions in the trade war could now be behind them.
Institutional buyers are getting back on board
Institutional demand is also strengthening the recovery. Grayscale recently did just that submitted to launch a Bittensor (TAO) Trust, aiming to attract major investors in AI-linked crypto assets.
In the meantime, Morgan Stanley expanded Bitcoin access for all its wealthy customers, a big step towards mainstream adoption. These moves indicate that significant capital is still being invested in crypto, providing strong support to the market.
BlackRock is leading the inflows into Bitcoin ETFs
Place Bitcoin ETFs remain a strong bullish force. Despite recent volatility, large institutional inflows have continued, with BlackRock’s IBIT ETF now among the top 20 US ETF assets under management, surpassing the $90 billion mark.
Altcoins will bounce back quickly
Bitcoin isn’t the only one seeing the recovery; Altcoins are also leading the recovery. Ethereum is up almost 9% and trading above $4,130, while XRP, Solana, BNB and Dogecoin are up between 10% and 20%.
Many traders believe that last week’s crash pushed prices too low, and now they are rushing back in as technical indicators like the RSI have risen, signaling a market reversal.
On-chain data shows an increase in whale accumulation and a reduction in negative funding rates, further supporting the bullish case for continued upside potential in the coming days.
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