Risk assets, including cryptocurrencies, have been unstable but are showing signs of a potential recovery on Tuesday, possibly supported by discussions suggesting that Donald Trump’s tariffs may not be as severe as originally anticipated.
During the early afternoon trading in the U.S., bitcoin (BTC) rose to just over $85,000, up 2.1% in the last 24 hours. Other major cryptocurrencies that previously faced significant declines, such as ether (ETH), dogecoin (DOGE), and cardano (ADA), have seen gains approximately double that figure.
Shares in crypto-related companies are also thriving, with bitcoin miners Core Scientific (CORZ) and CleanSpark (CLSK) experiencing nearly a 10% increase for the day. Strategy (MSTR) is up 5.4%, and Coinbase (COIN) has gained 2.1%.
The U.S. stock market also rebounded from early losses, with the Nasdaq showing an increase of nearly 1% for the day.
This movement occurs just before the Trump administration’s anticipated “Liberation Day” tariff announcement scheduled for tomorrow following the close of U.S. markets.
A Glimmer of Hope?
A report indicated that the most dreaded scenario for the market — a sweeping 20% tariff on all goods — is now seen as “less likely,” with the possibility of a “tiered system” featuring varied rates or specific rates for individual countries being a more probable approach.
Additionally, a statement from White House Press Secretary Karoline Leavitt during her daily briefing acknowledged the significant market fluctuations caused by tariff discussions, suggesting that the administration is aware of the impact.
Meanwhile, Israel’s Finance Minister Bezalel Smotrich announced on Tuesday the initiation of a process aimed at eliminating tariffs on U.S. imports within that country.