Bitcoin’s Wild Week Amid Trade-War Jitters

 

It has been a rollercoaster week for Bitcoin’s price, driven by global news rather than crypto-specific events. Early in the week, escalating trade tensions sent shockwaves through all markets – including crypto. President Trump’s announcement of new tariffs and fears of a brewing global trade war made investors pull back from riskier assets across the board. Crypto was no exception.

 

Bitcoin’s price plunged by about 5% on Monday, hitting its lowest level of 2025 as traders worldwide dumped speculative investments in favor of safer havens. Crypto stocks followed suit, mirroring the slide. This downturn was a stark reminder that despite the talk of Bitcoin being “digital gold,” in practice it often behaves like a high-risk asset when economic anxiety rises.

 

A wave of “risk-off” sentiment completely overshadowed any optimism about crypto, showing that in troubled times, crypto can sink just like stocks. In fact, the jitters were so strong that prominent investor Bill Ackman warned the U.S. could be headed toward an “economic nuclear winter” if the trade conflict intensified — the kind of fear that drives people to shed investments seen as risky.

 

 

For a beginner, the takeaway is that big macro-economic news (like tariffs, inflation, or war) can heavily influence crypto prices. Bitcoin doesn’t exist in a bubble; when the world’s economies sneeze, crypto can catch a cold.

 

Then came a sharp reversal. In a surprise move, President Trump announced a 90-day pause on the new tariff hikes, offering a temporary truce in the trade dispute. Almost instantly, Bitcoin’s price roared back. It surged over 8% on the news, leaping from the week’s lows to around $81,700 per coin. In intraday trading, it even hit a peak above $83,000.

 

This rapid rebound wasn’t limited to Bitcoin: the entire crypto market got a boost. Major altcoins like Ethereum jumped over 10% alongside Bitcoin’s rally, and the total market value of all cryptocurrencies climbed by about 8%, reaching roughly $2.6 trillion in market cap. In other words, nearly $200 billion flowed back into crypto assets within days.

 

Part of this bounce-back was simply relief — investors who had been fearful felt it was “safe” again to take on some risk. It’s a vivid example of how volatile crypto can be, and how quickly sentiment can swing.

 

So, why does this matter for someone new to crypto? First, it shows that Bitcoin is not yet a stable safe-haven in times of crisis. Many enthusiasts call it “digital gold,” but this week’s events suggest Bitcoin trades more like stocks or other risky assets when markets are turbulent. It went down when fear was high and back up when that fear subsided — much like tech stocks.

 

Second, it underlines the importance of keeping an eye on major news even if you’re only interested in crypto. Global economics, central bank decisions, or geopolitical events can all ripple into the crypto markets.

 

On the positive side, the quick recovery demonstrates the resilience and liquidity of crypto — there are always buyers on the sidelines ready to jump in on good news. But as a beginner, you should be prepared for swings in value. It’s wise to invest only what you can handle seeing dip in the short term.

 

The good news is that over this week, cooler heads prevailed. After the spike, analysts expect Bitcoin might consolidate (stabilize) around current levels as it approaches a technical resistance around the mid-$80,000s. In simpler terms, after such a wild ride up and down, the market often takes a breather.

 

For you, that means don’t panic in the drops or get too euphoric in the spikes. Crypto’s wild week shows it pays to zoom out and focus on the big picture — the technology and adoption — while being ready for a bumpy ride in price.