Bitcoin Rebounds Amid Tariff Uncertainty and Dip Buying

Bitcoin rebounded on Wednesday after an extended rout in crypto prices spurred some bargain buying. The recovery was fueled by hopes that U.S. President Donald Trump might scale down his aggressive trade tariffs, which have weighed on risk appetite in recent sessions.

After wild swings this week, Bitcoin—long the flagship digital asset—rose 3.4% to $87,103.8 by 00:51 ET (05:51 GMT). This rebound comes on the heels of Trump’s earlier promises of establishing a crypto reserve that initially sparked a sharp rally, only for that recovery to prove short-lived as the President provided few details on his crypto plans during his address before Congress on Tuesday evening.

U.S. Commerce Secretary Howard Lutnick further added to market optimism when he suggested that Trump could consider concessions for Canada and Mexico, following the imposition of 25% tariffs on imports from both countries. In addition, Trump recently imposed 20% tariffs on Chinese goods. Lutnick’s remarks raised hopes that these tariffs might be used primarily as a negotiating tool, potentially reducing the risk of an escalating trade war and thereby boosting sentiment for risk assets.

Despite these encouraging comments, Trump’s subsequent address before Congress did not offer any further hints on tariff concessions. Instead, he indicated that additional measures could be forthcoming by early April, leaving investors with lingering uncertainty over his overall trade and crypto strategy.

Bitcoin’s performance this week has been volatile, having tumbled below $80,000 amid persistent trade tariff concerns before rallying after initial news of the proposed crypto reserve. However, the lack of clarity on how the reserve will be formed and what government funding will be deployed has prevented a sustained recovery.

Market participants now look ahead to Trump’s first White House Crypto Summit this Friday, where further insights into his crypto regulatory plans are expected. Analysts remain cautious, noting that while dip-buying has helped keep Bitcoin from reaching last week’s lows, ongoing tariff uncertainty and ambiguous policy signals continue to create a challenging environment for the broader cryptocurrency market.