Bitcoin and other major cryptocurrencies rebounded early Thursday following a sharp decline in both crypto and equity markets the previous day. The shift in momentum comes as risk appetite shows signs of recovery and investor sentiment begins to exit the “extreme fear” zone.
According to CoinDesk data, Bitcoin (BTC) rose 0.8% over the past 24 hours to $84,719, reversing some of its Wednesday afternoon losses after Federal Reserve Chair Jerome Powell signaled the central bank would maintain current interest rate levels. Powell’s remarks, delivered at the Economic Club of Chicago, pushed back against expectations of market intervention, rattling both the stock and crypto markets temporarily.
🪙 XRP, Ether, and Solana Post Gains
Bitcoin wasn’t alone in the rebound. Other key cryptocurrencies followed suit:
- Ripple’s XRP climbed 1.1% to $2.09
- Ether (ETH) rose 1.5% to $1,592
- Solana (SOL) led the charge, surging 7% in the past 24 hours
The uptick comes as U.S. equities also turned positive, with both the S&P 500 and Nasdaq Composite gaining about 0.2%, paring back some of Wednesday’s broader market losses.
📉 Interest Rates and Crypto Correlation
“In the short term, Bitcoin and crypto are likely to remain correlated with U.S. equities as markets respond to policy volatility, including shifting tariffs,” said Dylan Bane, an analyst at Messari, a blockchain research firm.
The inverse relationship between cryptocurrencies and interest rates remains intact. Risk-sensitive assets like Bitcoin tend to gain when monetary policy is loose, and vice versa. With Powell signaling no immediate rate cuts, the market’s recovery appears more technical than fundamental—for now.
🛡️ Tariffs, Trump, and a Crypto Correction
Analysts are also keeping a close eye on President Donald Trump’s ongoing tariff policies, which have added layers of uncertainty to both traditional and digital asset markets. Bitcoin soared above $100,000 shortly after Trump’s inauguration in January, amid speculation that the new administration would embrace crypto innovation.
However, the rollout of new trade tariffs, combined with broader economic jitters, led to a market correction that dragged crypto prices down. Bitcoin has since fallen over 15% from those highs.
Alex Kuptsikevich, a senior market analyst at FXPro, notes that the crypto market has yet to break above a key resistance line set after Trump’s swearing-in. While the sentiment index has improved, it remains in the “fear” zone.
“This is a good signal that the correction may be over, but there are still not enough catalysts for a full-fledged rally,” Kuptsikevich said.
📊 What’s Next?
Despite the recent bounce, analysts remain split on where crypto goes from here. Some believe continued geopolitical tension and interest rate rigidity could weigh on further gains, while others see Bitcoin moving closer to decoupling from traditional assets in the longer term.
“Continued tariffs could catalyze structural economic change, leading to a decoupling of Bitcoin from traditional assets as it gains recognition as an independent store of value,” said Bane.
Until clearer economic signals emerge—be it from the Federal Reserve, the White House, or global macro trends—the crypto market is likely to remain in a volatile but potentially bottoming-out phase.
