Bitcoin Recovers to $80K, but Volatility Looms: 3 Trends to Keep an Eye On

BTC Price: Bitcoin recovered and surpassed the psychological price level of $80k again after a sharp drop. Previously, Trump's call for a 'strategic crypto reserve' had failed to impress digital currency enthusiasts as traders expected cryptocurrency to come under regulatory play with fresh demand being created. However, the administration later clarified that there would be no additional mining/buying of cryptocurrencies.

This led to a sharp fall in the price levels of major cryptocurrencies. Bitcoin, which had earlier jumped by nearly 9% after Trump's 'strategic reserve' announcement, plummeted by over 15%.

Major altcoins, including ADA, SOL and XRP, which earlier experienced a double-digit jump, also fell sharply as traders reassessed their outlook. However, as crypto coins witness a rebound in price levels, here are 3 trends to keep an eye on:

1.Trump's Tariff Call

While fluctuations in cryptocurrencies are relatively more severe and fast-paced compared to other assets and financial instruments, their price levels don't move in isolation. Any minor news that is remotely related to global trade or the broader geopolitical sphere can trigger a price movement. That's exactly why Bitcoin's price has been so volatile since the beginning of 2025 despite surpassing the $100k mark just a few months ago.

Trump's tariff policy flip-flop is creating heightened uncertainty, which is in-turn pushing investors to take a risk-averse approach, thus pulling them away from investing in cryptocurrencies. Earlier this year, Trump announced a straight 25% tariff imposition on Canada and Mexico. However, the US president later announced a 1-month halt on the implementation. This is making it harder for investors to gauge the already uncertain outlook.

2.Textbook Correction

Bitcoin is down over 30% from its all-time high in January. Many are viewing this sharp decline as a bearish signal with more correction ahead. It is also worth mentioning that cryptocurrencies alone are not experiencing a sharp downtrend. Recently, the tech-heavy index, Nasdaq also fell into the correction territory owing to the turbulent geopolitical outlook.

Crypto research firm, 10x Research stated that the current drop in Bitcoin might be a "textbook correction," wherein a correction is predictable after a major rally. 70% of sellers are recent investors who bought Bitcoin in the last 3 months and are now panic selling.

3.Strategic Crypto Reserve

While Trump's call for a crypto reserve is already priced in by now, fresh triggers might still emerge as implementation begins. Many traders were disappointed after they realised no new cryptocurrencies would be bought, but some see this as the initial step toward bringing crypto under regulatory oversight.