Bitcoin prices jumped by 2.1% to $97,311 on Monday, bouncing back after a sharp decline over the weekend. This recovery came as investors navigated ongoing trade tariff concerns and anxiously awaited key U.S. inflation figures.

Key Market Drivers

Bitcoin’s Weekend Pullback
BTC dropped more than 4% last week as a result of rising U.S.-China trade tensions. These tensions sparked liquidity worries, prompting investors to adopt a risk-averse stance and steered them away from speculative assets like crypto. Persistent inflation worries and a landscape of high interest rates further pressured Bitcoin prices.

Bitcoin’s Recovery
Despite the adverse conditions leading to a market sell-off, BTC rebounded with a 2.1% rise on Monday. Traders are optimistic about a possible easing of regulations under Trump, which could spur support for the cryptocurrency. However, with market volatility still at play, Bitcoin continues to struggle in establishing itself as a reliable hedge against market fluctuations.

Impact of Trade Tariffs
Trump’s actions: The imposition of 25% tariffs on steel and aluminum after recently enforcing 10% tariffs on China adds pressure to BTC and other risk-sensitive assets as the U.S. dollar strengthens.

Upcoming CPI Data
Investors are keenly awaiting the U.S. Consumer Price Index (CPI) release this Wednesday. Any higher-than-expected inflation rates could hinder Bitcoin’s upside potential as interest rates may remain elevated.

Market Outlook & Investor Insights

For Crypto Traders
Watch out for CPI data—higher inflation may lead to increased selling pressure on Bitcoin. Its unproven role as a safe haven asset is overshadowed as gold continues its rally.

For Macro Investors
Strengthening dollar and high rates could suppress Bitcoin demand. Trade uncertainty may impact institutional investments into crypto. Pay attention to equities and commodities for signs of broader sentiment shifts.

Final Thoughts

Bitcoin’s short-term recovery indicates some resilience amid ongoing macro risks. With trade tensions escalating and upcoming inflation data on the horizon, BTC investors should tread cautiously. The looming question remains—will Bitcoin breakthrough the $100K mark or will another decline follow?