Bitcoin Blasts Past $100K: Tariff Chaos Sparks a Crypto Comeback!
Bitcoin surges beyond $100K as Trump’s tariff pause fuels market recovery. Altcoins rally, but is this crypto’s big moment? Find out!
Bitcoin (BTC) has roared back, smashing through the $100,000 barrier on May 8, 2025, after weeks of turbulence tied to U.S. tariff policies. The crypto market, rocked by President Trump’s “Liberation Day” tariffs announced on April 2, is now rebounding, with altcoins like Ethereum (ETH), Solana (SOL), and XRP posting double-digit gains. This rally follows a 90-day tariff pause that eased fears of a global trade war, boosting investor confidence.
What’s Happening?
Trump’s initial tariff plan, imposing 10%+ levies on countries taxing U.S. goods, sent markets into a tailspin, with Bitcoin dipping to $75,000 in early April. A subsequent pause on tariffs for non-retaliating countries, except China, sparked a 7% BTC surge to $82,000 by April 10. Now, with Bitcoin hitting $100,000, the crypto market cap exceeds $3 trillion. Institutional buying, including $285 million in Bitcoin purchases by firms like Strategy, and strong ETF inflows are driving the momentum.
Trump’s initial tariff plan, imposing 10%+ levies on countries taxing U.S. goods, sent markets into a tailspin, with Bitcoin dipping to $75,000 in early April. A subsequent pause on tariffs for non-retaliating countries, except China, sparked a 7% BTC surge to $82,000 by April 10. Now, with Bitcoin hitting $100,000, the crypto market cap exceeds $3 trillion. Institutional buying, including $285 million in Bitcoin purchases by firms like Strategy, and strong ETF inflows are driving the momentum.
Why It Matters
Bitcoin’s rally reflects its growing appeal as a hedge against a weakening U.S. dollar, down 9% since January. The tariff pause has calmed equity markets, with the S&P 500 up 9.5%, lifting crypto alongside it. However, Bitcoin’s correlation with stocks (around 0.7) suggests it’s not fully decoupled from traditional markets. While long-term holders remain bullish, short-term volatility looms if trade tensions flare again, especially with China facing 125% tariffs.
Bitcoin’s rally reflects its growing appeal as a hedge against a weakening U.S. dollar, down 9% since January. The tariff pause has calmed equity markets, with the S&P 500 up 9.5%, lifting crypto alongside it. However, Bitcoin’s correlation with stocks (around 0.7) suggests it’s not fully decoupled from traditional markets. While long-term holders remain bullish, short-term volatility looms if trade tensions flare again, especially with China facing 125% tariffs.
What’s Next?
Analysts see Bitcoin testing $103,000-$105,000 if ETF inflows and institutional buying persist. Yet, a failure to hold $91,594 could trigger a pullback to $88,000. Altcoins like SOL and ETH may continue to shine, but regulatory shifts or renewed tariff fears could disrupt the rally.
Analysts see Bitcoin testing $103,000-$105,000 if ETF inflows and institutional buying persist. Yet, a failure to hold $91,594 could trigger a pullback to $88,000. Altcoins like SOL and ETH may continue to shine, but regulatory shifts or renewed tariff fears could disrupt the rally.
What’s your take on Bitcoin’s comeback? Comment below and follow trafy.io for more crypto updates!
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
