Turnaround Tuesday Brings Relief as Stocks and Crypto Recover from Lows

Bitcoin Rebounds to $88K as Markets Shake Off Tariff Jitters

After plummeting to an intraday low of $81,500, Bitcoin (BTC) has rebounded sharply, climbing above $88,000 in a dramatic reversal that mirrored a broader recovery in risk assets.

The implementation of President Trump’s new tariffs on Mexico, Canada, and China initially sent shockwaves through both crypto and stock markets. However, a wave of buying in the late morning session helped turn things around.

The Nasdaq, which was down nearly 2% earlier, is now up 0.7%, while the S&P 500 has pared losses to just 0.25%. Bitcoin is now up 1.5% in the last 24 hours, while Ether (ETH) remains unchanged at $2,171.

Crypto and Stocks See Volatile Trading

Bitcoin has been on a wild ride over the past 10 days, tumbling more than 20% from $109,000 to a low of $78,000 before staging a rapid 20% rally to $95,000. Another sharp decline followed, but today’s recovery signals renewed market interest.

Crypto-related stocks are seeing green, with MicroStrategy (MSTR) surging 11%, Coinbase (COIN) gaining 4%, and Marathon Digital Holdings (MARA) up 5%.

Market Eyes Federal Reserve Policy Shift

While risk assets have struggled in recent weeks, shifting interest rate expectations may provide support for a more sustained recovery.

Previously, markets had all but ruled out Federal Reserve rate cuts in 2025. However, weaker economic data, heightened trade tensions, and the recent market sell-off have led traders to reassess.

Futures markets now fully anticipate at least three Fed rate cuts this year, with the first potentially arriving as early as May. The 10-year Treasury yield has dropped from 4.80% at Trump’s inauguration to 4.15%, signaling growing bets on monetary easing.

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