Bitcoin staged a dramatic recovery on Monday after briefly crashing to $74,436, climbing back above $78,000 in a volatile session. The leading cryptocurrency suffered from President Donald Trump’s aggressive tariff policies while a closed-door Federal Reserve meeting raised expectations of an emergency rate cut.
BTC Price Seesaws as Trading Volume Explodes
According to CoinMarketCap, Bitcoin touched a low of $74,436.68 before bouncing to $78,385.02, still down 4% in the past 24 hours. Over seven days, BTC has fallen 6%, fluctuating in a range of $74,436.68 to $81,119.06. Trading volume skyrocketed to $100.29 billion, a staggering 582.44% increase from the previous day, driven by post-weekend activity and panic triggered by Trump’s tariff announcement. Bitcoin’s market cap dropped 4.20% to $1.55 trillion, while its dominance rose to 63.41%, indicating altcoins suffered even heavier losses. Coinglass data showed open interest in BTC futures fell 4.84% to $50.72 billion, and total liquidations reached $9.22 million, with longs accounting for $7.07 million.
Macro Uncertainty and Fed Meeting Fuel Speculation
Trump’s tariff policies continued to disrupt global markets, pushing Bitcoin to its lowest since November 2024. On Monday, Trump called on the Fed to cut rates, claiming inflation is nonexistent. The Fed held a closed board meeting at 11:30am EST to discuss discount rates, fueling bets on an emergency rate cut. Lower rates typically boost risk assets like Bitcoin, but the tariff situation could alter normal market dynamics.
Institutional Bulls Stand Firm
Despite the turmoil, Standard Chartered’s head of digital asset research Geoffrey Kendrick reiterated his bullish view, arguing that investors will turn to Bitcoin as a hedge against tariff risks. “U.S. isolationism is akin to increased risks of holding fiat, which will ultimately benefit bitcoin,” he said. Markets are now watching for Fed policy signals and tariff negotiations. If Bitcoin holds above $74K, it may set the stage for a rally; a breakdown below could worsen sentiment. High volatility is expected to persist.