Tuesday, 02 January 2024 12:17 GMT

Crypto Finds Its Footing After Tariff Shock-And Why The Bounce Matters


(MENAFN- The Rio Times) Bitcoin steadied on Monday morning after a bruising, tariff-driven sell-off late Friday that rippled across global markets. By about 06:30 UTC, BTC hovered near 114,900, up roughly 2.8% in 24 hours, with heavy but calmer trading-about $1.77 billion in turnover on major USDT pairs.

Ether followed, up 8.6% to around 4,147 on comparable volume. The surface story is simple: fear, then relief. Trade headlines sparked an abrupt“risk-off” flush, forcing out leveraged positions into the weekend.

By Monday, nerves cooled, and dip-buyers reappeared. The story behind the story is structural. Spot bitcoin ETFs ended the last U.S. session with a small net inflow, signaling that steady, rules-based buyers were still present even as prices slid.

Ether ETFs, by contrast, printed modest outflows-one reason ETH fell harder last week and snapped back faster today. With leverage reduced and exchange coin balances tight, a relatively small wave of demand can move price.

Altcoins told the tale of returning risk appetite. Among large caps, BNB jumped 14.7% to ~1,318; Solana rose 7.5% to ~195; XRP climbed 7.4% to ~2.56; and Dogecoin added 10.2% to ~0.209. LINK (+10.9%), SUI (+10.5%), and ADA (+8.6%) joined the rebound.



Extremes dotted the tape: SNX nearly doubled (+95.1%), TAO gained 33.1%, SKYAI spiked 240.8%, while AIA fell 19.7%. Litecoin firmed 2.1% to ~97.

The charts support a cautious reset. On the 4-hour frame, bitcoin bounced from the lower Bollinger band, reclaimed the mid-band, and flipped MACD positive as RSI recovered from oversold into the mid-40s-suggesting room to extend.

On the daily frame, the 200-day area near 107,000 held during Friday's flush, but price remains below faster moving averages. Resistance sits near 116,700, then 119,600 and 121,500; support is 112,000–110,000, then 107,000.

What to watch next: whether broader risk sentiment stabilizes and U.S. ETF flows stay supportive, especially for ETH. If those pieces hold, the market has the breathing room it needs to rebuild above the weekend lows.

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