Bitcoin has bounced back quickly after a brief period of selling, indicating that cryptocurrencies are faring better amid the market unrest caused by US trade tariffs compared to traditional stocks and bonds.

As of 6:30 a.m. in New York, Bitcoin was trading at around $77,200, having slipped by up to 3.2% earlier. Ether, the second-largest cryptocurrency, was also trading relatively unchanged after reaching its lowest point since March 2023. In contrast, European stock markets experienced a decline as US President Donald Trump's tariffs were enforced, leading to a rise in sovereign bond yields.

During Tuesday's turmoil, cryptocurrencies stood out as one of the few asset classes that remained stable, while investors continued to divest from stocks and bonds in search of safer havens. Market strategist Joel Kruger from LMAX Group highlighted that Bitcoin's stronger performance supports the argument for including it in investment portfolios as a hedge against risks.

The interest in cryptocurrencies is growing, with more investors recognizing Bitcoin's value proposition, especially as a hedge during times of global market instability. Despite this, some experts anticipate ongoing volatility in the cryptocurrency market. Sean McNulty, head of Asia Pacific derivatives at digital-asset prime brokerage FalconX, noted a significant purchase of put options to protect against downward movement for Ether and Solana. He also suggested that Bitcoin's next crucial support level could be at approximately $65,000.

McNulty expressed a sentiment that anticipates a restrained recovery in the cryptocurrency sector for the first half of the year. The dynamics in the crypto market continue to evolve, with participants closely monitoring these developments.