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Bitcoin and Ethereum experienced a significant rebound this week as new investments flowed back into cryptocurrency markets following the US–China tariff surprise.
Bitcoin climbed above $110,000 for the first time since early October, hitting approximately $111,000 at the time of this report, per data from CryptoSlate. This increase represents a 4% daily rise and recovers some of the losses incurred after President Donald Trump announced additional tariffs on Chinese goods.
Ethereum also surpassed the $4,000 mark for the first time in several weeks, rising more than 4% to around $4,045, a level that traders consider technically important.
Importantly, other prominent digital currencies joined the market momentum with their own rallies.
As per CryptoSlate’s data, BNB, XRP, Solana, Dogecoin, Tron, and Cardano each surged between 5% and 8%, indicating a widespread resurgence rather than a bounce limited to Bitcoin alone.
‘Buy the dip’
The current rise can be attributed to the prevailing “buy the dip” mentality in the market.
Significantly, on-chain data monitored by blockchain analysis platform Lookonchain reveals that over $6 billion in new Tether’s USDT and Circle’s USDC stablecoins have entered the market since last week.
Stablecoin issuance typically precedes renewed spot buying activities. In this scenario, capital seems to be shifting from cash reserves into dollar-pegged tokens to support token accumulation.
At the same time, this sentiment aligns with trends seen in traditional markets.
Data from The Kobeissi Letter, referencing Bank of America, indicates that US equity investors purchased $3.9 billion in stocks last week following three weeks of outflows.
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Stock Equities “Buy The Dip.” (Source: The Kobeissi Letter)
Analysts at the firm noted that net inflows to individual stocks reached $4.1 billion, marking the fifth-highest since 2008 and the largest recorded for a week in which the S&P 500 dropped at least 1%.
They added:
“This was fueled by institutional inflows of +$4.4 billion, the highest since November 2022. Retail investors acquired +$1.1 billion, marking their second weekly purchase out of the last six.”
Market remains cautious
Despite the increase, Bitwise’s Cryptoasset Sentiment Index continues to indicate a generally bearish outlook, with readings aligned with what analysts describe as a “high-risk, high-reward” environment for Bitcoin.
Crypto Sentiment Index (Source: Bitwise)
Nonetheless, the asset manager’s intraday sentiment model now indicates a bullish divergence is developing, which serves as an early sign of a potential short-term reversal.
Analysts at Galaxy Research echoed this cautiously optimistic sentiment, stating that while last week’s sudden crash “significantly impacted asset prices,” the overall situation “remains positive.”
They stated:
“Bitcoin remains well situated as digital gold to take advantage of fundamental skepticism about government fiscal and monetary responsibility, while the growth of tokenization and stablecoins, along with an extremely favorable U.S. regulatory environment, should enhance the outlook for other significant digital assets like ETH and SOL.”
The post Bitcoin surges above $110k, Ethereum rises over $4k amid renewed ‘buy the dip’ fervor appeared first on CryptoSlate.
