BTC, ETH Rebound as Volatility Persists Amid U.S.-China Tensions

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BTC, ETH Rebound as Volatility Persists Amid U.S.-China Tensions

By Manoj Dharra

1)     Bitcoin Faces Hurdles Despite Rebound

2)     Macroeconomic Tensions Keep Market Sentiment Fragile

3)     Ethereum Struggles as Altcoins Show Mixed Performance

Bitcoin (BTC) has shown a promising rebound after hitting lows over the weekend, potentially marking a short-term bottom. However, despite the recovery, BTC still faces significant hurdles before bulls can regain control of the market.

Currently, BTC is trading just under this threshold at $78,900, up by 3.5%.

The broader cryptocurrency market experienced a stabilization on Monday following a turbulent weekend of sharp volatility and panic selling.

This recovery was partially driven by a surprisingly resilient performance from U.S. stock indices, which declined less than expected and gradually stabilized during the session.

However, global market sentiment remains fragile as the ongoing economic standoff between the U.S. and China continues to intensify, casting uncertainty over risk assets.

Going Forward With both nations doubling down on tariff hikes and showing no signs of compromise, market volatility is likely to remain elevated.

In a brief market rally triggered by fake news suggesting President Donald Trump might pause tariffs for 90 days (except for China), Bitcoin briefly crossed the $80,000 mark before retreating. While this caused some short-term excitement, the underlying uncertainty remains and the market remains cautious.

Ethereum (ETH), once the dominant altcoin, has hit its lowest level against Bitcoin since February 2020. Trading around $1,565, Ethereum is facing challenges, with many investors from the 2018 ICO boom either at break-even or deep in losses. The market is now watching closely to see if Ethereum can recover or if this marks the beginning of a deeper bearish trend.

The global crypto market capitalization has increased by 3.65%, at $2.53 trillion, reflecting a broader recovery in the space.

On the ETF front, Bitcoin Spot ETFs saw $109 million in net outflows on April 7, marking the third consecutive day of outflows. Ethereum Spot ETFs, on the other hand, showed no movement, with zero flows observed.

Bittensor’s TAO token has seen a significant 23% jump, now trading at $209.17, following the launch of the dTAO upgrade, which enhances the AI-powered blockchain network’s efficiency by improving processing speeds and reducing bottlenecks.

XRP continues to show strength, up almost 6% at $1.87, following approval from the New York Stock Exchange (NYSE) Arca for the launch of Teucrium’s 2x Long Daily XRP ETF, which enables investors to gain double the exposure to XRP’s daily price movements.

ICP has also had an impressive quarter, reporting $6.196 million in revenue for Q1 2025, a staggering 60X increase from Q1 2024. ICP is up by over 10%, trading at $4.66.

From a technical perspective, BTC faces a crucial test at the $80,000 resistance level. Bulls need a decisive break above this level, with a daily close to signal a shift in sentiment. On the downside, $75,000 remains the key support level, with $68,000 as the next major area to watch.

Outlook:  while the crypto market has stabilized for now, the underlying macroeconomic uncertainties, particularly the ongoing U.S.-China tensions, will likely keep volatility high in the coming weeks. Traders and investors should remain cautious as they navigate these turbulent waters.

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