Bitcoin Rebounds to $87,819 as Dip Buyers Step In Amid Tariff Concerns

Bitcoin trimmed losses Tuesday, rebounding from session lows as dip buyers seized the opportunity. The leading cryptocurrency dropped 2.7% to $87,819 at 2:28 p.m. ET, recovering from an earlier low of $81,617.

Despite uncertainty over Trump’s crypto policies, Bitcoin and the broader market initially surged after he announced a national crypto reserve featuring Bitcoin, Ether, Solana, and Cardano. However, details on funding and implementation remain unclear, dampening enthusiasm. Trump’s crypto-themed tokens, including $TRUMP, have also faced volatility, adding to investor skepticism.

Market sentiment took a hit after Trump imposed tariffs—20% on China and 25% on Canada and Mexico—sparking fears of a trade war. While tariffs don’t directly impact crypto, they eroded risk appetite, driving investors toward safe-haven assets like gold and the Japanese yen.

Meanwhile, Ark Invest reshuffled its holdings, buying 38,865 Coinbase (COIN) shares worth $8 million while selling $8.2 million of its Bitcoin ETF (ARKB). This follows a similar rebalancing last week, reinforcing Coinbase as Ark’s sixth-largest holding, now accounting for 6% of its Next Generation Internet ETF (ARKW).

Altcoins mirrored Bitcoin’s rebound, with Ether gaining 2% to $2,167.74 and XRP surging 6% to $2.49. Solana jumped 11%, Cardano edged up 0.6%, and Polygon gained 0.9%. Meme coins also saw movement, with Dogecoin up 1% and $TRUMP rising 1.5%.

Investors are now eyeing Trump’s first White House Crypto Summit on Friday, where he may provide further regulatory insights. With pro-crypto appointees in key positions, anticipation remains high for clarity on U.S. crypto policies.