Following a promise from former President Donald Trump to implement $2,000 tariff-funded payments to Americans, cryptocurrency markets experienced a sudden surge. Bitcoin saw a leap to $105,000, while Ethereum rebounded above $3,600. However, the underlying political uncertainties have left traders cautious.
Bitcoin Stabilizes Near $105,000 Amid Market Jitters
Bitcoin exceeded $105,000 in response to Trump’s tariff announcement, gaining a notable 1.75% and breaking weeks of consolidation around the psychological threshold of $100,000. Ethereum surged by 7% to $3,631, indicating a momentary alleviation of institutional anxiety.
Solana also performed well, rising 6.08% to $167.36, as altcoin traders drew encouragement from Bitcoin’s renewed strength. Overall, there appears to be a recovery momentum, with BNB showing slight gains and XRP benefiting from the improved risk sentiment across the board.
Notably, Bitcoin spot ETFs attracted $252 million in fresh capital on November 6, ending a six-day drought that diminished market confidence. Ethereum ETFs saw an additional $12.5 million, suggesting institutions were quietly accumulating during the market’s weakness.
Nevertheless, these gains are not extraordinary; rather, they signify minor recoveries. Bitcoin remains down 5.7% over the week, while Ethereum has slid by 7.5%, even after Sunday’s bounce. The market seems to be trying to recover from self-inflicted wounds rather than establishing a solid new upward trend.
A Week of Pain and the Road Ahead
The previous week was particularly harsh, with Bitcoin falling below $100,000 for the first time since late June. This triggered a wave of liquidations that wiped out $19 billion in leveraged positions. Ethereum mirrored this trend, as institutional buyers retreated and retail investor capitulation increased.
The driving force behind this was a simple lack of buyers. Expectations of Federal Reserve interest rate cuts, which traders believed would spur demand for cryptocurrencies, failed to materialize as catalysts.
Instead, the yield on 10-year Treasury bonds stubbornly remained above 4%, making speculative bets in cryptocurrencies less attractive compared to safer bond investments. Meanwhile, the paralysis in the U.S. government drained liquidity from financial markets as lawmakers squabbled over spending bills.
The outlook for this week hinges entirely on whether Trump’s tariff dividend plan will actually come to fruition. Should Congress approve the plan and the Supreme Court validate Trump’s tariff system, cryptocurrencies could see sustained inflows as beneficiaries of any relief measures seek hedges against inflation.
However, these are two substantial “ifs.” Budget experts have already indicated that tariff revenues may only total around $90 billion after accounting for related fiscal damages—far short of the $300 billion needed for the payments. Traders are essentially betting on political miracles. If conditions do not change swiftly, expect Bitcoin to test the $98,000 to $95,000 range if the support at $100,000 breaks again.
While the rally is encouraging, it remains rooted in hope rather than fundamental strength.
John is a seasoned journalist at The Bothside News, specializing in balanced reporting across news, sports, business, and lifestyle. He believes in presenting multiple perspectives to help readers form informed opinions. His work embodies the publication’s philosophy that truth emerges from examining all sides of every story.
