Cryptocurrencies experienced a bounceback following a steep decline driven by President Donald Trump's implementation of tariffs on US trade partners, resulting in a turbulent day of trading. Bitcoin hovered around $79,000 after dropping to $74,425 earlier in the day. The market cap of all cryptocurrencies dropped by about 11% to $2.5 trillion before recovering. The global markets, including crypto, reacted with volatility to Trump's tariff actions, impacting stocks in Asia, Europe, and the US.

The crypto industry had high hopes for Trump's second term, but the unexpected tariffs caused a significant disruption. The market saw a liquidation of about $1.5 billion in bullish crypto bets, reflecting a challenging period for investors. Options markets indicated a continued selling pressure, with a notable increase in demand for put options as investors sought downside protection in the face of uncertainties.