- Trump’s tariff payment plan triggered a brief rebound in cryptocurrencies.
- Bitcoin touched $105,000; Ethereum recovered above $3,600.
- ETF inflows signal tentative institutional re-entry.
President Trump on Sunday announced a pledge to provide tariff-related payments of at least $2,000 to most Americans, a move that lifted cryptocurrencies out of their weekend slump.
Bitcoin jumped to $105,000 while Ethereum climbed back above $3,600 as traders suddenly rediscovered appetite for risk assets.
The CoinDesk 20 index halted a brutal 15% weekly decline, as the prospect of fresh stimulus money flowing into digital assets resurfaced.
Bitcoin consolidates near $105,000 amid market angst
Ethereum rose 7% to $3,631, erasing three days of losses and suggesting that institutional anxiety has eased, at least temporarily.
Solana climbed 6.08% to $167.36, encouraging altcoin traders driven by renewed Bitcoin strength.
On a broader front, recovery momentum looked notable. BNB ticked up modestly, while XRP benefited from the general improvement in risk sentiment accompanying Bitcoin’s move.
One key detail: spot Bitcoin ETFs saw $252 billion in new inflows on November 6, ending a six-day outflow streak that had dented market confidence.
Ethereum ETFs added $12.5 million that day, indicating that institutions quietly accumulated during the weakness.
It’s important to note these are not dramatic gains — they are relief rallies. Despite Sunday’s rebound, Bitcoin still fell 5.7% for the week and Ethereum lost 7.5%.
The market is essentially trying to recover from self-inflicted wounds rather than build durable new momentum.
A brutal week and the path forward
Last week was punishing. Bitcoin broke below $100,000 for the first time since late June, triggering a wave of liquidations that wiped out roughly $19 billion in leveraged positions almost immediately.
Ethereum mirrored the weakness as institutional buyers disappeared and retail capitulation accelerated.
The culprit was simple: buyers stopped buying. Traders had expected a Fed rate cut that would spur cryptocurrency demand, but that catalyst never materialized.
Instead, the 10-year Treasury yield stubbornly stayed above 4%, making speculative bets less attractive compared with safer fixed-income alternatives.
Meanwhile, a U.S. government shutdown threat drained liquidity from financial markets as lawmakers quibbled over spending bills.
This week’s outlook hinges entirely on whether Trump’s tariff dividend actually materializes.
If Congress approves the plan and the Supreme Court upholds the tariff mechanism, cryptocurrencies could see sustained inflows as recipients seek inflation hedges.
But that’s two very big ifs. Budget experts have noted that, after accounting for offsetting tax effects, tariff revenues total roughly $90 billion — far short of the roughly $300 billion needed to fund payments at the announced level.
Traders are essentially betting on a political miracle. Unless developments change rapidly, if support near $100,000 fails again, Bitcoin could be expected to test $98,000 to $95,000.
This rebound feels encouraging, but it is built on hope rather than fundamentals.