Introduction
Bitcoin demonstrated resilience by recovering to $68,000 following a sharp dip triggered by new U.S. tariff announcements. Meanwhile, Ethereum Classic stole the spotlight with a 16% surge, while several altcoins posted notable gains. The broader crypto market cap reclaimed the $2.4 trillion level despite ongoing regulatory and macroeconomic uncertainty.
Key Points
- Bitcoin quickly recovered from a $2,000 tariff-induced drop, demonstrating strong support around $65,600-$68,000 levels.
- Ethereum Classic led major gainers with a 16% surge, while DOT, UNI, and NEAR also posted significant altcoin gains of up to 8%.
- The U.S. Supreme Court's tariff ruling and subsequent White House response created immediate cryptocurrency market volatility before stabilization.
Bitcoin Weathers Tariff-Induced Storm
Bitcoin’s price action this week has been a masterclass in volatility and recovery. The primary cryptocurrency, after defending the $65,000 support level last weekend, rallied to nearly $71,000. However, this bullish momentum was short-lived, with resistance at $70,000 on Monday leading to a decline that culminated in a drop to $65,600 on Thursday. A swift rebound of $3,000 from that low set the stage for Friday’s dramatic events.
The catalyst for the latest swing was a ruling from the U.S. Supreme Court, which declared some Trump-era tariffs illegal. The immediate response from the White House was to impose an additional 10% global tariff. This macroeconomic shockwave sent Bitcoin tumbling by $2,000 in minutes. Yet, demonstrating the market’s underlying strength, BTC recovered just as quickly, reclaiming ground above $68,000. This resilience underscores the $65,600-$68,000 zone as a critical area of support. Bitcoin’s market capitalization now stands above $1.360 trillion, with its dominance over alternative cryptocurrencies holding steady near 56.5%.
Altcoin Performance: ETC Leads, Major Coins Lag
While Bitcoin navigated macroeconomic headwinds, the altcoin market presented a mixed but intriguing picture. Major large-cap assets like Ethereum (ETH), Ripple’s XRP, Solana (SOL), and Tron (TRX) posted only minor daily gains of under 1%. This tepid performance has kept Ethereum struggling below the psychologically significant $2,000 level, with XRP hovering around $1.45.
The standout performer, however, was Ethereum Classic (ETC), which rocketed by 16% to trade at $9.70. This surge far outpaced the broader market. Following ETC, Filecoin (FIL) and Arbitrum (ARB) also posted notable gains. From the cohort of larger alternative cryptocurrencies, Polkadot (DOT), Uniswap (UNI), and Near Protocol (NEAR) emerged as the top performers, with NEAR leading the pack with gains of up to 8%. Bitcoin Cash (BCH) also registered more impressive gains compared to its mega-cap peers, highlighting a selective appetite for risk among traders.
Market Resilience and the Road Ahead
The collective action across Bitcoin and select altcoins points to a market absorbing external shocks with notable composure. The total cryptocurrency market capitalization has reclaimed the $2.4 trillion mark, specifically reaching $2.415 trillion at the time of reporting. This recovery to a key valuation threshold, despite the tariff-induced volatility, suggests underlying investor confidence.
The weekend’s events underscore the cryptocurrency market’s continued sensitivity to U.S. regulatory and macroeconomic developments, as seen with the Supreme Court ruling and the subsequent tariff announcement. However, the rapid recovery from the sell-off indicates that bullish sentiment, particularly around key support levels for Bitcoin, remains intact. The divergent performance between lagging mega-caps like Ethereum and surging assets like Ethereum Classic, Polkadot, and Near Protocol suggests capital is rotating within the digital asset ecosystem, searching for momentum and value beyond the market leaders.
đ Related coverage from: cryptopotato.com
