What happened?
Bitcoin bounced back above $114,700 after a volatile weekend when President Trump softened his tone on China, easing fears of a 100% tariff shock. Global stocks and commodities stabilized too, trimming big losses from the prior sell-off. That calmer mood, plus renewed ETF inflows, helped BTC recover from a low near $109,700.
Who does this affect?
Crypto traders and investors who were hit by last week’s drop are the most directly affected, since sentiment shifts can mean quick gains or losses. Institutional players and ETF managers re-evaluating risk are also impacted as they decide whether to re-enter positions. Retail holders and projects tied to Bitcoin’s growth — including Layer‑2 efforts mentioned in the article — could see renewed interest and capital flow if confidence holds.
Why does this matter?
Calmer trade tensions can push money back into risk assets, which could sustain a rally in Bitcoin and broader markets. A technical break above $116,000 could spark momentum toward $122,000, especially if ETF inflows continue, adding liquidity and upward pressure. But if support around $112,700 fails or trade fears return, volatility and downside risk would likely come back quickly, reversing gains.