- Bitcoin rebounded above $100K, rising 2.7%, as bargain buying offset fears over AI developments and Trump’s mixed crypto policies.
- Altcoins like Ethereum and XRP, along with memecoins such as $TRUMP, also saw gains, reflecting a cautious market recovery.
Bitcoin (BTC) regained its footing above the $100,000 mark on Tuesday, rallying 2.7% to $103,036.4 as of 05:56 GMT. This recovery came after the cryptocurrency briefly dipped below the psychological threshold, triggering a wave of bargain buying. While traders capitalized on the dip, caution remains, driven by concerns over artificial intelligence (AI) developments and U.S. President Donald Trump’s evolving stance on crypto regulation.
AI Concerns Shake Risk Markets
Bitcoin’s rebound followed a turbulent session across global markets, largely fueled by fears surrounding AI-driven cost efficiency. The release of China’s DeepSeek R1, an AI model rivaling ChatGPT but operating with older, cost-effective hardware, rattled Wall Street’s technology sector. NVIDIA Corporation (NASDAQ: NVDA), a major player in AI chip production, saw sharp declines, sparking a broader sell-off in risk-driven assets like cryptocurrencies.
Despite Bitcoin’s resilience, market sentiment remains shaky. Futures for U.S. stock indexes hinted at further losses, suggesting continued caution among investors navigating AI-related uncertainty.
Trump’s Crypto Policies: Hope or Hurdle?
President Trump’s recent executive order on cryptocurrency regulation added to the market’s mixed signals. While the order outlined a framework for digital asset regulation, it notably excluded any mention of Bitcoin, raising questions about the administration’s priorities.
Adding complexity, Trump hinted at the creation of a strategic digital asset reserve, though details remain scant. Meanwhile, his tariff threats—promising universal trade tariffs significantly higher than the proposed 2.5%—further pressured global markets and dampened risk appetite.
Arizona lawmakers, on the other hand, took a more Bitcoin-friendly stance. A bill proposing to invest public funds in Bitcoin advanced in the state legislature. However, its approval prospects appear slim, as a previous attempt to recognize Bitcoin as legal tender stalled.
Altcoins and Memecoins Follow Bitcoin’s Lead
The broader crypto market mirrored Bitcoin’s recovery, with Ethereum (ETH) gaining 2.2% to $3,209.99 and XRP surging 5.7% to $3.1040. Memecoins also showed signs of life, particularly $TRUMP, which rebounded 12% to $29.898 after plummeting to a record low earlier this week. Despite its rally, $TRUMP remains down nearly 60% from its post-launch peak of over $60.
Other altcoins like Cardano (ADA), Solana (SOL), and Polygon (MATIC) posted modest gains of 0.2% to 5%, while Dogecoin (DOGE) climbed 4.3%.
Bitcoin’s ability to rebound above $100,000 highlights the enduring interest from investors, even amid macroeconomic headwinds and regulatory uncertainty. However, the market remains highly sensitive to developments in AI, Trump’s trade and crypto policies, and broader economic conditions. With altcoins and memecoins also rallying, the coming weeks may offer greater clarity on whether this rebound is sustainable or merely a brief respite in a volatile market.
