Turnaround Tuesday Sparks Strong Recovery Across Crypto and Equities

Bitcoin Surges Back Above $88K as Markets Rebound From Lows

After falling as low as $81,500 earlier in the session, Bitcoin (BTC) has rebounded sharply, climbing above $88,000 in a dramatic turnaround for crypto and equity markets.

Both stocks and cryptocurrencies were initially under pressure as the U.S. officially implemented 25% tariffs on imports from Mexico, Canada, and China. However, buyers stepped in late in the morning, sparking a strong recovery.

The Nasdaq, which was down nearly 2% at one point, is now up 0.7%, while the S&P 500 has pared earlier losses to trade just 0.25% lower. Bitcoin is now up 1.5% over the past 24 hours, while Ether (ETH) remains flat at $2,171.

Bitcoin’s Volatile Week

Bitcoin has seen extreme price swings over the past 10 days. After plunging more than 20% from Feb. 21 to Feb. 27, bottoming near $78,000, it rebounded above $95,000 before retracing back to $81,000 yesterday. Today’s resurgence marks yet another sharp price movement in what has been an unpredictable trading period.

Crypto-related stocks are also seeing a bounce, with MicroStrategy (MSTR) gaining 11%, Coinbase (COIN) up 4%, and Marathon Digital Holdings (MARA) climbing 5%.

Rate Cuts on the Horizon?

Despite recent market turmoil, conditions may be shifting in favor of risk assets.

Just weeks ago, the market had all but ruled out the possibility of Federal Reserve rate cuts in 2025. However, a combination of economic weakness, tariff-induced uncertainty, and falling markets has changed that outlook. Traders are now fully pricing in at least three Fed rate cuts this year, with the first expected as early as May.

The bond market has also responded, with the 10-year Treasury yield retreating to 4.15%, down from 4.80% when President Trump took office six weeks ago.