Investing.com-- Bitcoin rebounded Tuesday, tracking a recovery in broader financial markets after bruising losses through the first quarter of the year, with focus shifting to U.S. President Donald Trump’s plans for more trade tariffs.
Bitcoin rose 3.4% to $85,290.2 by 4:59 ET (21:59 GMT).
Bitcoin recovers after bruising Q1
Bitcoin steadied after wiping out about 11% in value in the first quarter of 2025. The world’s largest cryptocurrency also slid about 24% from a record high hit in January.
Bitcoin was battered by a mix of profit-taking, disappointment over Trump’s crypto policies, and worsening risk sentiment as the U.S. President embarked on his trade tariff agenda.
Trump is set to unveil elaborate plans for more trade tariffs against key U.S. trading partners on April 2, a date he has repeatedly touted as “liberation day.” Trump is also set to impose tariffs on sectors such as semiconductors, pharmaceuticals, and select commodities.
But with few actual details available on the planned tariffs, risk appetite deteriorated amid speculation over the scope and economic impact of the planned tariffs. Analysts were also seen increasing their expectations for a U.S. recession this year.
Speculative assets such as Bitcoin were the worst hit by increased risk aversion, with Bitcoin also lagging the S&P 500 and the IXIC so far in 2025.
Trump to invest in Bitcoin mining company
A company run by Trump’s two oldest sons- Eric Trump and Donald Trump Jr.- will merge with and take a 20% stake in American Bitcoin- a Bitcoin mining operation majority-owned by miner Hut 8.
The deal adds to the host of crypto ventures backed by Trump in recent months, including the decentralized finance project World Liberty Financial, and the $TRUMP memecoin.
Trump has maintained a largely pro-crypto stance since taking office, naming several pro-crypto candidates in key regulatory positions, especially in the Securities and Exchange Commission.
But Trump’s policies for crypto- including the establishment of a strategic reserve from the government’s existing Bitcoin holdings- offered little support to crypto prices.
Crypto price today: altcoins rise tracking Bitcoin
Most major altcoins advanced in tandem with Bitcoin on Tuesday, although gains remained modest after a bruising Q1 and muted risk appetite.
World no.2 crypto Ether rose 5% to $1,913.26, while XRP rose 2.6% to $2.14.
Cardano rose 3.7%, Solana added 0.8%, and Polygon fell 0.1%.
Among meme tokens, $TRUMP advanced 2.8%, while Dogecoin leaped 4.3%.
Ambar Warrick contributed to this report.