Bitcoin began the week on a strong note, recovering some of the losses it suffered last week following U.S. President Donald Trump’s proposal to impose 100% import tariffs on China.
The world’s largest cryptocurrency rallied on Monday as market sentiment turned positive after Trump appeared to soften his tone on trade relations.
In a post on his Truth Social platform, Trump wrote, “We don’t want to hurt China; we want to work with them.” This signaled a more conciliatory stance that helped ease global market concerns.
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Bitcoin was up 3.7% over the past 24 hours, trading around $115,460, though still about 9% below its record high. After plunging below $110,000 during last week’s sell-off, the crypto asset is currently trading at $115,027 as of the time of writing this report.
Traders have been “buying the dip,” suggesting that fears surrounding the trade war may have subsided for now.
Institutional Buyers Reenter the Market
Institutional activity is also bolstering Bitcoin’s recovery. Grayscale recently filed to launch a Bittensor Trust, designed to attract institutional investors into AI-linked crypto assets, signaling growing confidence in the digital asset sector.
Meanwhile, Marathon Digital Holdings (MARA), one of the world’s leading Bitcoin miners listed on Nasdaq, reportedly purchased 400 BTC worth approximately $46.3 million through crypto brokerage firm FalconX.
According to on-chain data from Arkham Intelligence, Marathon executed the purchase via its custodian, Anchorage Digital, with additional inflows from FalconX wallets. The transactions suggest a continued pattern of institutional accumulation, with smaller transfers—such as 150 BTC worth $18 million—recorded over the past week.
This latest acquisition brings Marathon’s total Bitcoin holdings to 52,850 BTC, valued at around $6.1 billion, solidifying its position among the world’s largest public Bitcoin holders.
Market Recovery Amid U.S. Government Shutdown
Bitcoin’s resurgence comes against the backdrop of the ongoing U.S. federal government shutdown, which has entered its third week. The stalemate, caused by a budget impasse between Republicans and Democrats, has halted progress on the approval of 16 pending Bitcoin and cryptocurrency exchange-traded funds (ETFs).
Despite the political uncertainty, risk appetite appears to be returning across the broader crypto market. Major altcoins are also rallying, with Ethereum up nearly 9% to trade above $4,130, while XRP, Solana, BNB, and Dogecoin have gained between 10% and 20%.
Recall that last week’s bloodbath saw the crypto market experience its most devastating single-day crash on record on Friday, erasing over $19 billion in value within just 24 hours. Analysts note that the sharp downturn may have pushed crypto prices too low, prompting traders to re-enter the market.
Technical indicators such as the Relative Strength Index (RSI) are showing upward momentum, suggesting a potential reversal. On-chain data also reveals increased whale accumulation and a decline in negative funding rates, further supporting the bullish outlook.
Vincent Liu, Chief Investment Officer at Kronos Research, observed that liquidity is gradually returning as markets rebound amid leverage resets and easing tariff concerns. “Despite the weekend whiplash, the ‘Uptober’ uptrend stays alive as buyers boldly buy the dip,” Liu noted.
Nassar Achkar, Chief Strategy Officer at CoinW, shared a similar sentiment, emphasizing that the broader bullish trend remains intact. He added that traders are closely monitoring key macroeconomic signals, particularly the upcoming U.S. CPI report, the Federal Reserve meeting, and ETF flow data—to gauge Bitcoin’s next move.
Future Outlook
As optimism returns to the crypto market, Bitcoin’s rebound may signal the beginning of renewed momentum, with investors watching closely to see whether this recovery can evolve into a sustained rally.
