Bitcoin weathers the tariff storm—here’s why it’s holding strong

Earlier this week, Bitcoin dipped to $74,000, triggering alarms across the crypto community. But by Friday, it had surged past $82,000, recapturing 11% of its value in just a few days. The catalyst? A surprise announcement by President Donald Trump that rolled back parts of his previously aggressive tariff agenda, offering a temporary 90-day reprieve on select import duties.
Altcoins rebound alongside Bitcoin
Bitcoin wasn’t alone in the recovery. The entire cryptocurrency market responded swiftly to the policy shift. XRP rose 20%, rebounding from $1.66 to nearly $2. Meanwhile, Solana climbed back from a sharp drop, gaining 23% to hit $120.
These rallies helped lift the total market capitalization of digital assets to $2.59 trillion by Friday, up from a low of $2.35 trillion earlier in the week. For context, that’s a 10% recovery in just four days—no small feat in a market known for its volatility.
From fear to relief: how policy changes shook investors
Just days ago, sentiment in the crypto world was spiraling. Fears had escalated that Trump’s sweeping tariffs—targeting nearly all of America’s trading partners—would fuel inflation and erode global economic confidence. As a result, investors fled from high-risk assets like cryptocurrencies in favor of safer bets.
But by midweek, the story changed. In a stunning reversal, Trump announced that most countries would see only a 10% base tariff, and that additional duties would be suspended for 90 days. China was the exception, facing tariffs totaling a staggering 145%—a move that added fuel to the fire but left room for partial optimism elsewhere.
The relief was immediate. The S&P 500 surged nearly 9.5%, its strongest daily gain since 2008. Bitcoin followed suit, rising by 5% in just a few hours, as traders recalibrated their expectations.
Volatility remains the name of the game
Still, if this week taught us anything, it’s that volatility is far from over. Traditional markets stumbled again on Thursday, clawed back some gains Friday, but remain deeply unsettled. And while Bitcoin may have bounced back this week, it’s still down 25% from its all-time high of $109,000 reached in January.
Speaking with Fortune, Youwei Yang, chief economist at crypto mining firm BIT Mining, described the price swings as closely tied to “uncertainty around global tariff policies.”
“This 90-day pause offers some breathing room,” Yang said, “but markets are still on edge. Even with a pro-crypto administration, the broader ecosystem is stuck in a bearish cycle, waiting for clear signs to spark a sustained recovery.”
What lies ahead for crypto investors?
For now, traders will be watching Washington as closely as they watch the charts. Trump’s tariff strategy, while softened, remains a wildcard. If further escalations hit the headlines—or if the 90-day pause is lifted without a follow-up plan—Bitcoin and other digital assets could once again face downward pressure.
But in the short term, Bitcoin’s ability to rebound from a steep drop—while the rest of the financial world whiplashes from policy shifts—is a reminder of why many still see it as a long-term hedge. It’s not immune to shocks, but it’s proving it can weather storms that rattle traditional markets.
As always in crypto, the only certainty is change. For those with a long view, that’s less a warning—and more of an opportunity.