While Bitcoin has breached the $84,000 mark, the markets have returned to a familiar scene of excessive enthusiasm mixed with anxiety and anticipation.
An 8% jump within a few hours following Trump’s announcement of tariff suspensions reaffirms that Bitcoin is no longer just a fringe cryptocurrency – it has now become a sensitive indicator of the global economic climate and a direct reaction to geopolitical decisions.
From an analytical perspective, this surge reflects more than just the tariff suspension. It reveals the market’s growing recognition of Bitcoin’s strength as an alternative asset, one that gains appeal when traditional markets face instability. But its utility as a store of value in tough times like gold is still to be proved.
BlackRock CEO Larry Fink’s remarks played a pivotal role in fueling this leap. When one of the world’s most prominent asset managers declares that a potential 20% market crash is a “buying opportunity,” he’s not just guiding retail investors, he’s preparing the market for a massive institutional wave heading toward crypto assets, especially Bitcoin.
What’s striking is that Fink didn’t dismiss the idea of a downturn – he embraced it, framing it as a “tactical” move consistent with major structural changes in the markets. Thus, the recent Bitcoin rally shouldn’t be seen as an anomaly, but rather as a logical outcome of collapsing trust in traditional markets and a rising demand for hedging strategies.
Is Bitcoin a global fear index?
The market’s reaction may have been sharp, but it wasn’t surprising. For some time now, Bitcoin has been behaving like a “global fear index,” rising whenever uncertainty clouds political and economic outlooks.
Historically, major price gaps follow significant announcements or events, just as happened this week. With the price reaching $83,600 after a daily low of $74,700, Bitcoin posted a 13% gain in just two days.
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Technically, this signals strong buying pressure, but it also supports the likelihood of a profit-taking wave near the next psychological resistance at $85,000, a level many traders see as a temporary “sell wall”.
The picture isn’t complete without considering critical upcoming data. Markets are awaiting inflation reports from both the U.S. and China on Thursday.
“This means that the current optimism, built on Trump’s actions and Fink’s comments, remains fragile and susceptible to reversal,” said crypto markets analyst Rania Gule this morning. “It creates a high-volatility environment where impulsive decisions could be risky. Taking large positions now could be dangerous, especially since Bitcoin has historically shown a tendency to reverse after major political or economic shocks.”
But there’s another scenario that can’t be ignored: What if the inflation data turns out positive, or at least “less bad than expected”? In that case, we might witness an accelerated rally pushing Bitcoin toward breaking through $88,800, the next technical level before serious talk of hitting the $100,000 mark begins.
If this scenario is accompanied by continued political messaging that supports economic openness, then this ambitious forecast could become a near-term reality.
There’s no doubt that Trump’s latest move helped calm fears of a trade escalation that could have led to a global recession. The suspension of tariffs on 75 countries, while maintaining pressure on China, was enough to push both Bitcoin and global equities higher. This shift confirms two key points:
First, markets don’t always need comprehensive solutions, sometimes, strong positive signals suffice. Second, Bitcoin is now reacting similarly to major indices like the Nasdaq and S&P 500 – a qualitative shift in its behaviour as a financial asset.
Crypto markets rally on tariffs news
The rally wasn’t limited to Bitcoin either. Ethereum, Ripple, Solana, and other crypto assets also recorded double-digit daily gains. Gule says this momentum raises a crucial question: Are we witnessing another temporary bubble or the start of a long-term bullish trend? She leans toward the latter, on the condition that macroeconomic indicators continue to improve and that Fink’s “buying opportunity” materializes as actual inflows from major funds and financial institutions.
Gule reckons Bitcoin is no longer just a speculative bubble or an inflation hedge. Over time, it has evolved into a highly sensitive asset that responds to politics, economics, and even public sentiment.
Between Larry Fink’s prophecy and Trump’s boldness, we find ourselves at a pivotal moment that could propel the market into new territory. The $100,000 milestone is no longer a distant dream —it’s a realistic possibility if these factors continue to build. But as always in markets, the most important question isn’t whether the price will get there — it’s when… and what could stop it now. The answer lies in the technical outlook.
