Bitcoin price surged above $80,000 briefly after experiencing a drop to $74,000 in the last 24 hours. The rebound was triggered by fake news suggesting President Donald Trump is considering suspending tariffs for 90 days on all countries except China. This news led to a brief market rally and helped Bitcoin price reach the $80,000 level before falling back to its current price. The White House has confirmed the reports as false, adding uncertainty to the markets. Trump continues to emphasize the importance of tariffs for fair trade practices and domestic manufacturing.
The cryptocurrency market showed signs of recovery following the news of the tariff pause. Ethereum, XRP, Solana, Dogecoin, and BNB all experienced gains in the short term. Ethereum rose to $1,567.92, XRP climbed to $1.88, Solana rose to $106.84, and Dogecoin showed the highest hourly gain at +5.5%. BNB lagged behind with a 1.49% gain. The entire cryptocurrency market experienced a brief relief rally, with prices rebounding after the initial drop.
Despite the market rally, economic concerns persist. Goldman Sachs has predicted a likely recession even if Trump reverses his tariff policies. The financial firm suggests that economic growth will slow due to various factors, including a tightening in financial conditions, foreign consumer boycotts, and policy uncertainties. The 5.64% decrease in global crypto market capitalization over the past 24 hours indicates that the overall downtrend has not been completely erased by the recent price recovery.
During this period of market volatility, the 24-hour trading volume in the crypto market surged by over 400%. The overall bearish outlook has pushed the crypto fear & greed index to extreme fear at 23. Bitcoin and altcoins experienced double-digit declines in the past 24 hours, leading to total crypto liquidations surpassing $600 million. Despite the recovery in prices, the market remains uncertain due to ongoing economic challenges and geopolitical factors.
In conclusion, the recent surge in Bitcoin price above $80,000 was driven by fake news regarding a potential tariff pause by President Trump. The market rally following the news led to gains in various cryptocurrencies, although economic concerns continue to loom over the market. As volatility persists and global economic uncertainties remain, investors should exercise caution and closely monitor market developments for potential opportunities and risks.
