- Bitcoin briefly hit $100K after a tariff delay but fell to $98K as China retaliated with new tariffs, impacting market sentiment.
- XRP led altcoin gains with a 30% surge, driven by expanding global liquidity and investor efforts to recover recent losses.
- A record $1.98B in liquidations wiped out 590K traders, yet the market cap rebounded above $3.3T, signaling bullish momentum.
The crypto market has rebounded after yesterday’s steep losses, with Bitcoin, Ethereum, XRP, and Solana having substantial gains. BTC briefly surged past $100,000 before retreating, while Ripple’s XRP surged by 30% early Tuesday. Volatility remains high as global economic events affect market sentiment.
Bitcoin’s Brief Rally and Market Shifts
According to QCP Broadcast, BTC surged to $100,000 after a one month delay in U.S. tariffs on Mexico and Canada. This suggested potential trade negotiations, leading to market optimism. However, the relief was short lived as China retaliated with new tariffs, dragging BTC back down to $98,000.
China also launched an antitrust investigation into Google, targeting major U.S. tech firms. Such actions introduce uncertainty, potentially affecting earnings and impacting risk on assets like crypto.
Meanwhile, Trump’s executive order directing officials to create a U.S. sovereign wealth fund added further speculation. While some anticipate this move could boost Bitcoin demand, the funding mechanism remains unclear.
XRP and Broader Market Trends
Ripple’s XRP led altcoin gains, surging 30% as investors aimed to recover losses from the recent market crash. The global money supply continues to expand, influencing market liquidity.
According to Doctor Profit, the ongoing increase in liquidity suggests rising prices regardless of fear, uncertainty, and doubt (FUD) in the market. Analyst Javon Marks noted that tackling this crypto cycle requires handling increased FUD, which could be greater than any seen before.
Record Liquidations and Market Outlook
According to Crypto Birb, Tuesday was the largest capitulation event in crypto history, with 590,229 traders liquidated, resulting in $1.98 billion in losses. Despite this, the total market cap went back above $3.3 trillion, indicating the overall bullish trend.
Crypto Birb noted that billions of dollars continue to flow into the market, sustaining upward momentum. The rising 200 day moving average since 2023 supports the long term uptrend, further strengthening market confidence.
Crypto Birb cautioned that at cycle peaks, massive liquidations could wipe out portfolios. Traders must manage risk, especially as volatility is expected to intensify. Trump’s reported purchase of 86,000 ETH for $220 million suggests further market moves are coming in the next few weeks.
