Bitcoin’s price has surged from $75,000 to over $85,500 in a matter of days, with market sentiment shifting positively following news of a potential 90-day pause on tariffs. While this news has temporarily calmed global market fears, Bitcoin’s recovery also highlights the growing confidence of large investors and traders in the cryptocurrency’s long-term value.

The Impact of Tariff News on Bitcoin

The recent rally came after a statement on former President Donald Trump’s campaign website suggested that, if re-elected, he would temporarily pause tariffs on Chinese goods. As the news spread, Bitcoin’s price began to climb, reaching over $85,000 in a swift recovery.

Altcoin Daily, a popular crypto analysis platform, highlighted that Bitcoin’s market reaction was significantly faster than the traditional stock market, a testament to the 24/7 nature of the cryptocurrency space. This positive movement also came amidst a broader market reaction to the trade news, which seemed to promise a potential break in the trade tensions between the U.S. and China.

However, the situation became more complicated when Trump later clarified on his social media platform, Truth Social, that no official policy changes had been confirmed. This mixed messaging left investors uncertain about whether the price surge was based on speculative hope or if it was truly linked to tangible policy changes.

Positive Sentiment Among Large Investors

On-chain data from Santiment shows that large investors, such as those following Michael Saylor’s investment strategy, continue to accumulate Bitcoin, reinforcing belief in its long-term value. In addition, fewer Bitcoins are being held on exchanges, which often indicates that investors are opting to hold rather than sell, a sign of increased confidence in Bitcoin’s future performance.

With many holders now in profit, the pressure to sell has diminished, offering Bitcoin an additional layer of support that could help stabilize its current price.

Market Uncertainty and Caution

Despite Bitcoin’s positive momentum, there is a sense of caution among larger institutional investors. Many are waiting for clearer signals from the government and the Federal Reserve before making substantial moves. Uncertainty surrounding U.S. trade policy and the upcoming presidential election has many holding off on major decisions, adding an element of unpredictability to the market.

Additionally, analysts like Morgan Stanley’s Michael Wilson believe the crypto and stock markets could remain in a sideways trend for the next three to six months. Wilson noted that the lack of significant economic support from the government or the Federal Reserve could lead to more volatility in the markets, including Bitcoin.

Signs of a Cooling Phase for Bitcoin

While Bitcoin has enjoyed a strong rally, Bloomberg’s senior strategist Mike McGlone has suggested that it may be entering a cooling phase. McGlone referred to the recent price action as a “biggest money pump in history,” but believes Bitcoin could lose some of its momentum after such a strong surge.

Furthermore, McGlone warned that Bitcoin might be lagging behind traditional assets like gold, which has seen renewed interest from investors. The ongoing outflows from Bitcoin ETFs, combined with a shift toward safer assets, suggest that some investors are opting for the stability of gold rather than the volatility of Bitcoin.

A Shift in Investment Preferences

Despite the caution from some quarters, other experts see Bitcoin’s rally as part of a broader trend in which Bitcoin, gold, and silver are all rising together. Financial author Robert Kiyosaki, a strong advocate for Bitcoin, believes this signals a larger shift away from fiat currencies and traditional financial systems. According to Kiyosaki, the simultaneous rise of these assets reflects growing concern among investors about the stability of traditional money, prompting a shift toward alternative stores of value.

Kiyosaki’s perspective suggests that Bitcoin’s rise could be part of a much larger and longer-term trend that challenges the foundations of traditional finance.

Conclusion

Bitcoin’s price surge in recent days has been fueled by positive sentiment in the market, particularly after news of a possible tariff pause. While the initial excitement around this news has since been tempered by mixed signals, the cryptocurrency’s rebound signals growing confidence among investors, particularly larger ones.

Despite some analysts predicting a cooling phase, others see this as part of a broader shift in how people view money and investment, with Bitcoin, gold, and silver rising in tandem. The coming weeks and months will likely offer more clarity on whether this trend will continue or if Bitcoin will experience a cooling phase.

For now, Bitcoin remains a highly watched asset, with investors closely monitoring trade policy developments and broader market trends to gauge its next move. Whether this recovery marks the beginning of a new phase or a temporary surge remains to be seen.