- Trump’s tariff-funded payout plan sparks a short crypto rally.
- Bitcoin hits $105K; Ethereum bounces back above $3,600.
- ETF inflows point to a cautious institutional reentry.
President Trump’s Sunday announcement promising at least $2,000 in tariff-funded payments to most Americans jolted the crypto market out of its weekend lull.
Bitcoin surged toward $105,000 while Ethereum climbed back above $3,600 as traders suddenly rediscovered appetite for risk assets.
The CoinDesk 20 index snapped a brutal weekly decline of 15% on the prospect that fresh stimulus could flow into digital currencies.
Bitcoin consolidates near $105K amid market jitters
Ethereum jumped 7% to $3,631, erasing three days of losses and signaling that institutional nervousness had eased—at least temporarily.
Solana rose 6.08% to $167.36 as altcoin traders were encouraged by Bitcoin’s renewed strength.
The broader picture shows recovery momentum. BNB posted modest gains, while XRP benefited from Bitcoin’s improved risk appetite across the market.
A key detail: Bitcoin spot ETFs captured $252 million in fresh capital on November 6, ending a six-day outflow drought that had eroded confidence across the market.
Ethereum ETFs added $12.5 million the same day, suggesting institutions quietly accumulated during the weakness.
These are not spectacular gains. They are relief rallies. Bitcoin remains down 5.7% for the week and Ethereum is 7.5% lower despite Sunday’s bounce.
The market is essentially trying to heal a self-inflicted wound rather than create genuinely new momentum.
A week of pain and the road ahead
Last week was brutal. Bitcoin slipped below $100,000 for the first time since late June, triggering a wave of liquidations that pushed $19 billion of leveraged positions out the door in a single session.
Ethereum mirrored the weakness, sliding as institutional buyers retreated and retail capitulation accelerated.
The culprit was simple: buyers disappeared. Hoped-for Federal Reserve rate cuts that traders expected to boost crypto demand did not materialize as catalysts.
Instead, the 10-year Treasury yield stubbornly held above 4%, making speculative bets less attractive relative to safer fixed-income options.
At the same time, the U.S. government shutdown drained liquidity from financial markets as lawmakers bickered over spending bills.
The outlook for this week depends entirely on whether Trump’s tariff dividend actually happens.
If Congress signs off and the Supreme Court clears the tariff regime, crypto could enjoy sustained inflows as recipients of stimulus seek inflation hedges.
But those are two very big ifs. Budget analysts have already noted that tariff revenues are projected to total roughly $90 billion after accounting for offsetting tax effects—nowhere near the $300 billion needed to fund the payouts.
Traders are effectively betting on political miracles. Unless that calculus changes quickly, expect Bitcoin to test $98,000 to $95,000 if the $100,000 support level gives way again.
The rally feels good, but it is built on hope rather than firm fundamentals.