- Trump’s tariff payout plan sparks a brief crypto rally.
- Bitcoin climbs toward $105,000; Ethereum rebounds above $3,600.
- ETF inflows point to cautious institutional re-entry.
President Trump’s Sunday announcement promising at least $2,000 in tariff-funded payouts to most Americans jolted cryptocurrencies out of a weekend lull.
Bitcoin surged toward $105,000 while Ethereum climbed back above $3,600 as risk appetite briefly returned to markets.
The CoinDesk 20 index reversed part of its steep weekly losses on speculation that fresh stimulus could funnel into digital assets.
Bitcoin consolidates near $105K amid market caution
Ethereum rallied about 7% to $3,631, recovering several days of losses and suggesting that some institutional apprehension had eased for the moment.
Solana gained roughly 6.1% to $167.36 as altcoin traders followed Bitcoin’s renewed strength.
BNB climbed modestly, while XRP also benefited from improved risk sentiment across the market.
A notable detail: Bitcoin spot ETFs attracted $252 million in inflows on November 6, ending a six-day run of outflows that had dented market confidence.
Ethereum ETFs added about $12.5 million the same day, indicating that some institutions were quietly accumulating during the pullback.
These moves are relief rallies rather than signs of a decisive uptrend. Bitcoin remains down roughly 5.7% for the week, and Ethereum is about 7.5% lower despite the Sunday bounce.
Overall, the market appears to be healing from a recent self-inflicted shock rather than building new, durable momentum.
A painful week and what lies ahead
Last week was punishing. Bitcoin dropped below $100,000 for the first time since late June, triggering widespread liquidations that closed roughly $19 billion in leveraged positions.
Ethereum tracked that weakness as institutional buyers pulled back and retail selling intensified.
Fundamentally, demand evaporated: anticipated Federal Reserve rate cuts that might have supported crypto failed to materialize as a catalyst.
Meanwhile, the 10-year Treasury yield stuck above 4%, making speculative assets less attractive relative to safer fixed-income alternatives.
A partial US government shutdown further drained liquidity as lawmakers disputed spending measures.
This week’s trajectory largely depends on whether Trump’s tariff dividend actually becomes law.
If Congress approves the plan and the Supreme Court upholds the tariff framework, stimulus recipients could channel some funds into inflation hedges like crypto, supporting further inflows.
But that scenario depends on two major approvals. Budget analysts note tariff receipts are roughly $90 billion after accounting for related tax impacts—far short of the roughly $300 billion required to finance the proposed payouts.
Traders are essentially wagering on a political turnaround. Unless the situation shifts quickly, Bitcoin may retest support in the $98,000 to $95,000 range if $100,000 gives way again.
The recent rally provides short-term relief, but it’s rooted more in optimism than in solid fundamentals.