Bitcoin Rebounds After Trump Tariff Crash, New ATH Predicted

The cryptocurrency market faced a severe test of its “Uptober” legacy when former US President Donald Trump threatened to impose 100% tariffs on crucial Chinese technology products. The announcement sent shockwaves through digital asset markets, with Bitcoin (BTC) experiencing an immediate nosedive that briefly pushed prices as low as $101,000 on some exchanges. The dramatic sell-off represented one of the most significant single-day declines in recent months, testing the resilience of the broader crypto ecosystem.

However, the bearish momentum proved short-lived as bullish investors quickly stepped in to reclaim most of the losses. Within days, BTC had staged an impressive recovery, trading well above $115,000 at the time of reporting and representing a 3.5% increase on a daily scale. This rapid rebound from local lows has reignited debate about whether the world’s largest cryptocurrency is positioned to soar to new all-time highs during the current market cycle.

Prominent market voices have interpreted the volatility as a potential turning point rather than a market breakdown. Analyst Alex Becker characterized the recent market conditions as “quite boring” prior to the crash, suggesting the dramatic price action added a “zesty sauce” that could bring necessary dynamics to the sector. He dismissed the collapse as nothing more than an “overreaction” to Trump’s announcement, describing it as “the most manipulative dump in the history of crypto.”

Becker’s bullish outlook extends to predicting that BTC may reach a new historical peak as early as this week, warning that “selling right now could be the stupidest thing you could ever do.” This optimistic sentiment is echoed by veteran trader Peter Brandt, who maintains that BTC, along with leading altcoins like ETH, XRP, and XLM, remains well-positioned to attack fresh tops despite the recent turbulence.

Adding technical analysis to the conversation, X user Ted told his 213,000 followers that the primary cryptocurrency could reach a new all-time high if it successfully reclaims the crucial resistance level around $117,500. This price point has emerged as a key psychological and technical barrier that could determine the next major directional move for Bitcoin.

Multiple fundamental indicators appear to support the optimistic outlook for Bitcoin. Data from CryptoQuant reveals that the amount of BTC stored on cryptocurrency exchanges recently dropped to approximately 2.43 million assets, marking a seven-year low. This significant reduction in exchange reserves typically indicates decreased selling pressure, as investors move their holdings to cold storage for long-term safekeeping rather than maintaining liquid positions for potential sales.

The popular Fear & Greed Index, which measures overall market sentiment across investors, provides additional context for the recent price action. On October 12, following the Trump tariff announcement, the index plunged to 24—the lowest reading since April of this year. Although it has since recovered to 38, the metric remains firmly in “Fear” territory, signaling that many market participants continue to exhibit signs of panic and pessimism.

This divergence between improving technical fundamentals and lingering negative sentiment creates what some analysts see as a classic contrarian opportunity. The crypto market’s tendency to move against crowd expectations makes Warren Buffett’s timeless principle—to be greedy when others are fearful and fearful when others are greedy—increasingly relevant in this volatile sector. The current combination of strong underlying metrics and fearful sentiment suggests the conditions may be ripe for continued upward momentum.