Bitcoin Surges 14% to $85,500 on Tariff Pause Hopes

Bitcoin's market sentiment has shifted positively following a significant price rebound. The cryptocurrency surged from $75,000 to over $85,500 within a few days, coinciding with a 90-day pause on tariffs. This development helped to alleviate global market fears and provided Bitcoin with an opportunity to recover.

Market platform Santiment indicates that traders are feeling more optimistic, with blockchain data supporting this sentiment. Major investors, such as Michael Saylor’s Strategy, continue to purchase Bitcoin in large quantities, demonstrating long-term confidence. However, there is a decrease in the amount of Bitcoin held on exchanges, suggesting that investors prefer to hold rather than sell. Santiment also noted that many Bitcoin holders are now in profit, which reduces the pressure to sell and helps support the price.

This sudden rise in Bitcoin's price is linked to trade news. An update on President Donald Trump’s campaign website stated that, if elected, Trump would pause some tariffs on Chinese goods. Since the crypto market is always open, it reacted faster than the stock market. However, confusion arose when Trump posted on his social media platform, Truth Social, stating that no changes to tariffs had been officially announced. This mixed message created uncertainty in the market, making it difficult to determine whether the price rise was based on real news or not.

Despite the short-term rise, large investors remain cautious. Many are waiting for clear signals from the government before making significant moves. Uncertainty around trade policies and the upcoming election is causing these investors to exercise caution.

According to a recent report, both the stock market and the crypto market are currently stuck in a sideways trend. This could last another three to six months. The government and the Federal Reserve are not doing much to support the economy right now, which could lead to more price swings in all markets.

Bitcoin may be entering a cooling phase after what is being called the “biggest money pump in history.” Following a dramatic price surge, Bitcoin is now showing signs of fatigue. There are warnings that it could be losing its status as “digital gold” as traditional gold makes a strong comeback. This is indicated by continuous outflows from Bitcoin ETFs and a shift in investor preference toward gold. Despite Bitcoin’s 8% rally over the weekend to around $85,000, investors are leaning back toward safer, time-tested assets.

However, not all experts agree with this assessment. Some argue that Bitcoin, gold, and silver are all rising together, marking a broader shift away from fiat and traditional financial instruments.