(Bloomberg) — Bitcoin rebounded from a short-lived selloff in a sign that cryptocurrencies are weathering the market turmoil unleashed by US trade tariffs better than equities and bonds.
Bitcoin traded around $77,200 as of 6:30 a.m. in New York after earlier slipping as much as 3.2%. Ether, the second-biggest token, was also trading little changed for the session after hitting its lowest since March 2023. Stock markets in Europe tumbled as US President Donald Trump’s tariffs took effect, while sovereign bond yields spiked.
Cryptocurrencies were among few asset classes to hold steady on Tuesday as investors kept dumping stocks and bonds and seeking havens to the turmoil. Bitcoin’s relative outperformance buttresses the argument that it should be included in portfolios to hedge against risks, said Joel Kruger, market strategist at LMAX Group.
“Investors are increasingly waking up to Bitcoin’s underlying value proposition, particularly its allure as a hedge during times of global market turbulence,” he said.
Others predict continued volatility in cryptoassets. Put options offering downside protection for Ether and Solana were bought in bulk overnight, according to Sean McNulty, head of Asia Pacific derivatives at digital-asset prime brokerage FalconX. He added that the next key support level for Bitcoin is around $65,000.
“It seems like people have given up on a major recovery in crypto in the first half of the year,” said McNulty.
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