Cryptocurrencies Rebound as Bitcoin Recovers to $83.000

In a climate of high volatility and global uncertainty, cryptocurrencies continue to reflect market nerves, caught between hopes for monetary easing and fears of renewed geopolitical escalation.

Cryptocurrencies rebounded on Thursday, with Bitcoin recovering to the $83,000 level amid a mixed session on Wall Street and fresh hopes for monetary easing, though persistent trade war fears kept a lid on optimism.

The crypto market remains highly volatile in the wake of macroeconomic turbulence.

Bitcoin price hovered above the $83,000 mark on Binance, while Ethereum struggled to hold support around the $1,550 range.

Among altcoins, Binance Coin posted slight gains, and Cardano and Avalanche also saw modest advances. Meanwhile, Solana, XRP, Dogecoin, and Chainlink experienced minor pullbacks. Tron and Toncoin saw the sharpest losses among the top cryptocurrencies.

These moves came after a downbeat session on Wall Street, which slipped back into the red following Wednesday’s sharp rebound led by the “Magnificent Seven”—a group of tech giants led by Tesla that surged as much as 20%. The correction also rippled across Asia, where Japan’s Nikkei dropped 3%, while Europe remained relatively calm.

Trump Announces Tariffs to Be Suspended

The ongoing geopolitical tensions remained front and center. President Donald Trump announced a 90-day suspension of reciprocal tariffs on all countries except China.

However, the White House was forced to revise its own numbers: the tariff on Chinese imports now stands at 145%, not 125% as initially stated, after adding a 20% duty introduced earlier this year in response to China’s alleged involvement in fentanyl trafficking. This makes the total tariff rate on Chinese goods the highest among all trading partners.

With this, the trade war has once again become a key source of anxiety in financial markets. Some analysts, such as those at Berenson & Berenson, advise reducing exposure to risk—particularly in U.S. equities—as the latest rebound may be nothing more than a “dead cat bounce.” They recommend rotating out of U.S. positions and investing in European markets or alternative assets such as gold.

Other analysts, like those at Incrementum, suggest investing in Bitcoin as an alternative to fltering U.S. positions. They highlight the growing correlation between Bitcoin and U.S. equities, which could make the cryptocurrency an interesting investment target in the current macroeconomic climate.

Investors Await Clarity Amid Caution from the Fed

In this tense environment, investors hope that the temporary trade truce might lead to progress in negotiations that could ease global tensions and pave the way for economic recovery.

Yet, skepticism prevails—especially amid mounting fears of a potential U.S. recession with global spillover effects. The Conference Board’s snapshot of U.S. consumer confidence for May is expected to show a decline, while the trade balance figures for April are also due.

Meanwhile, the Federal Reserve remains in a wait-and-see mode. Minutes from its latest meeting showed a cautious stance, with officials wary that inflationary pressures may persist longer than expected. Markets are already pricing in several rate cuts this year, though the size and timing remain uncertain. The probability of a 50-basis-point cut in June now exceeds 10%.