Bitcoin rebounded on Tuesday after dipping below $100,000, supported by bargain buying, but market sentiment remained cautious amid concerns over AI-driven risks and uncertainty around Trump’s policies.
The cryptocurrency rose 2.7% to $103,036.4 by 00:56 ET (05:56 GMT) after recovering from Monday’s drop below the key $100,000 level. Meanwhile, traders focused on President Trump’s regulatory plans following last week’s underwhelming executive order and the stabilization of his memecoin, $TRUMP, which had lost 60% of its value since launch.
Market jitters persisted after steep Wall Street losses spilled over into crypto, driven by concerns over AI spending following China’s launch of the DeepSeek R1 model, rivaling ChatGPT with lower costs. Tech stocks, particularly NVIDIA, faced sharp declines, fueling a global risk-off sentiment.
Further pressure on risk appetite came from Trump’s threats of universal trade tariffs, with reports suggesting a staggered approach starting with a 2.5% duty. U.S. stock index futures trended lower in Asian trade, reflecting continued caution over market weakness.
Trump dismissed the idea of a staggered tariff approach, stating he plans to push for tariffs far higher than 2.5%.
In terms of crypto policy, markets showed little enthusiasm for Trump’s recent executive order calling for a regulatory framework. While he hinted at plans for a strategic digital asset reserve, the lack of details and the complete omission of Bitcoin in the order were key sticking points.
Meanwhile, Arizona lawmakers advanced a bill allowing the state to invest public funds in Bitcoin, though its prospects remain slim, as a previous attempt to make Bitcoin legal tender made little progress.
Crypto prices today: Altcoins rise, $TRUMP rebounds
The broader crypto market firmed on Tuesday, following Bitcoin’s gains. Ethereum climbed 2.2% to $3,209.99, while XRP surged 5.7% to $3.1040.
$TRUMP rebounded 12% to $29.898 after touching a record low of $24.736 earlier this week, though it has lost about 60% of its value from its post-launch peak of over $60.
Other altcoins like Cardano, Solana, and Polygon rose between 0.2% and 5%, while Dogecoin, among meme tokens, gained 4.3%.
