Bitcoin made a strong comeback to end the week, climbing back to nearly $84,000 on Friday after experiencing major volatility earlier in the week. The leading cryptocurrency had dropped to a low of $74,700 on Monday, driven by investor concerns over international trade tensions.
The initial decline in Bitcoin’s value coincided with heightened anxiety spurred by U.S. President Donald Trump’s trade policy escalations. A series of newly announced reciprocal tariffs on Chinese imports rattled markets, pushing investors away from risk assets early in the week.
However, optimism returned midweek following Trump’s decision to pause most tariff implementations for 90 days, a move that reassured markets and reversed the downward trend in both cryptocurrencies and equities.
Market Reactions
- Bitcoin: surged over 5% in 24 hours to reach $84,000
- Solana: climbed more than 8%, hitting $120
- Ethereum: rose approximately 3%, trading near $1,550
- Equities: The S&P 500 gained 5.6%, Nasdaq was up 7.3%, and the Dow Jones increased by 5%
Despite this bounce in risk assets, underlying economic signals remain concerning. The University of Michigan reported an 11% drop in consumer sentiment for April, signaling growing pessimism. More troubling is the rise in inflation expectations, which have hit levels not seen since the early 1980s.
Investor Behavior and Safe Havens
In response to the volatility and macroeconomic uncertainty, many investors turned to traditional hedges. Gold prices reached a new record of $3,263 per ounce, underscoring the market’s risk-averse sentiment despite the crypto rebound.
Bitcoin’s Role in Economic Uncertainty
The recent surge in Bitcoin’s price—despite surrounding economic and policy instability—underscores its high volatility and potential as both a speculative asset and a possible long-term hedge. The events of the week have reignited discussions about its viability as a store of value in uncertain economic times.
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