Bitcoin Bounces Back: Rises Above $97K Amid US Tariff Turmoil and Inflation Jitters

Bitcoin rebounded on Monday after a weekend slump, rising 2.1% to $97,311. The world's largest cryptocurrency had lost over 4% last week as escalating U.S.-China trade tensions spooked investors. The recent market turmoil followed former U.S. President Donald Trump's announcement of 25% tariffs on all aluminum and steel imports, days after imposing 10% tariffs on China. In response, Beijing implemented retaliatory tariffs on key U.S. exports, adding pressure on global markets.

Despite being seen as a hedge against economic uncertainty, Bitcoin has struggled to maintain its value during market stress, unlike gold, which hit record highs. A stronger U.S. dollar, driven by expectations of prolonged high interest rates, also weighed on crypto. Investors now await Wednesday’s U.S. Consumer Price Index (CPI) data, expected to show a 2.9% year-over-year inflation increase. Sticky inflation could delay Federal Reserve rate cuts, adding further uncertainty.

Meanwhile, Bitcoin treasury firm Strategy, formerly MicroStrategy, acquired 7,633 BTC between Feb. 3 and Feb. 9, spending $742.4 million at an average price of $97,255 per Bitcoin. The firm now holds 478,740 BTC, valued at over $46 billion, representing more than 2.2% of Bitcoin’s fixed 21 million supply. The latest purchases were funded by selling stock and preferred shares, with $4.17 billion in shares still available under its “21/21 plan” to raise $42 billion for further Bitcoin acquisitions.

Altcoins followed Bitcoin’s recovery, with Ethereum rising 4.1% to $2,660, XRP gaining 3.4%, and Cardano climbing 6.6%. Meme tokens Dogecoin and $TRUMP also advanced 4.7% and 2.5%, respectively. Despite the rebound, caution remains as macroeconomic uncertainties persist.