Bitcoin continued to hover near the $80,000 mark on Friday, as cryptocurrency markets faced renewed volatility stemming from shifting U.S. trade policy. The instability followed a sharp rebound earlier in the week after President Donald Trump temporarily eased some of his proposed tariffs, fueling a short-lived rally across financial markets. After dropping to $74,000 on Monday, Bitcoin surged back to over $84,598 by Saturday, recovering in double digits within a matter of days.
The rally coincided with Trump’s announcement of a 90-day pause on certain new tariffs, which temporarily calmed investor nerves. Despite this bounce, Bitcoin remains down roughly 25% from its record high of $109,000 in January. The broader digital asset market followed a similar trajectory. XRP jumped 20% to $1.99 after hitting a weekly low of $1.66, while Solana climbed 23% to $120 from a low of $97. The total cryptocurrency market capitalization rose 10% over the same period, reaching $2.59 trillion on Friday, up from $2.35 trillion earlier in the week.
The week began with widespread selling across risk assets, triggered by fears over Trump’s plan to implement sweeping tariffs on nearly all U.S. trading partners starting Wednesday. These concerns pushed many investors to offload volatile holdings, including cryptocurrencies, in favor of safer options. Hours after some of the new tariffs took effect, Trump reversed course, announcing a 90-day delay on a portion of the levies. However, a 10% base tariff remains in place across most nations, with China facing additional duties that bring its total tariff burden to 145%.
The partial reprieve sparked a historic rally in equities, with the S&P 500 closing Wednesday up 9.5%, its strongest one-day performance since 2008. Still, markets remain jittery. Although major indexes regained some ground on Friday, they continue to trade well below levels seen before the April 2 tariff announcement. Bitcoin’s recent gains have also proven fragile, reflecting lingering uncertainty about the long-term direction of U.S. trade policy. BIT Mining chief economist Youwei Yang attributed the crypto market’s turbulence to the inconsistent tariff messaging.
“Bitcoin has been highly volatile this week, driven by the back-and-forth around global tariffs,” he said. Yang warned that continued uncertainty would likely prolong market instability. “The temporary 90-day pause brought some relief, but the market remains cautious,” he added. Despite a generally crypto-friendly stance by the Trump administration, analysts say investor confidence remains low amid broader concerns over economic growth and regulatory clarity. As markets await more definitive policy direction, volatility is expected to persist. – By CryptoWire News Desk.
